The capacity utilization rate of rolling lines in Central China has declined in this period, according to the SMM survey.

Operating Rate and Forecast of Building Material Production Lines in Central China Steel Mills

During the survey period (March 25-March 31), the operating rate and capacity utilization rate of rebar rolling lines in steel mills in the Central China region both declined. The operating rate of wire rod rolling lines remained unchanged, while the capacity utilization rate decreased.

Data source: SMM

During the survey period (March 25-March 31), the operating rate and capacity utilization rate of rebar rolling lines in steel mills in the Central China region both declined.

Specifically, a new electric furnace plant in Hubei market was shut down for maintenance, and the rebar rolling line was also under maintenance, resulting in a decline in the operating rate compared to the previous period. At the same time, some steel mills shortened the operating time to control inventory, which led to a reduction in rebar supply. In terms of in-plant inventory, some steel mills in the region had a demand to reduce inventory at the end of the quarter, and the supply to traders increased, resulting in a decline in overall in-plant inventory compared to the previous period.

The rebar production in the Central China region is expected to shift from decline to increase next week, mainly due to the adjustment of production plans by steel mills in Henan region, with the resumption of a rebar rolling line, leading to an increase in the capacity utilization rate.

Data source: SMM

During the survey period (March 25-March 31), the capacity utilization rate of wire rod rolling lines in the Central China region slightly declined.

Specifically, there were no new maintenance activities in the region during this period, and only some steel mills in Hubei region reduced the operating time to alleviate inventory pressure, resulting in a reduction in wire rod supply in the region. In terms of in-plant inventory, some steel mills in Henan region accelerated shipments, with most wire rods being sent to surrounding cities, and the overall in-plant inventory continued to decline.

The wire rod production in the Central China region is expected to shift from decline to increase next period, mainly due to the resumption of normal production by steel mills in the region, with a slight increase in operating time and an increase in the capacity utilization rate.

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