SMM Rebar Production Schedule: High Production Enthusiasm Driven by Profits, Significant Increase in Wire Rod to Fill in the Gaps in Specifications

Since April 2022, the SMM survey sample for rebar production schedules has been expanded to include 56 enterprises.
According to the SMM survey data from 56 samples of key steel-producing enterprises:

1.The planned rebar production in May was 9.3153 million mt, an increase of 360,500 mt compared to the actual production in April, representing a growth rate of 4.03%.
2.The planned wire rod production in May was 3.6894 million mt, an increase of 185,700 mt compared to the actual production in April, representing a growth rate of 5.30%.

Chart: Production Schedule for Rebar and Wire Rod at Steel Mill (56 Steel Mills)

Data source: SMM

Overall: in April, the price trend of construction steel nationwide first declined and then rose. In the first ten days of the month, the tariff hikes overseas affected the overall trend of bulk commodities. After the market panic sentiment was digested in the middle and late ten days, coupled with frequent rumors of crude steel production restrictions and the release of stockpiling demand before the Labour Day holiday, the market performance improved significantly. On the cost side, the price trend of raw materials in April was roughly in line with that of finished steel, and the profit margins of steel mills fluctuated relatively small, with overall benefits remaining between (-200-200). In east China and north China, some steel mills reduced their production of rolled plates and increased their production of construction materials. Additionally, some steel mills resumed production after maintenance, resulting in a significant increase in production. However, the benefits in central China and north-west China were not as good as those in coastal areas. Some manufacturers arranged maintenance plans and diverted some pig iron to wide and heavy plate lines, slightly affecting the production of construction materials. Multiple steel mills faced shortages of wire rod specifications. To replenish market resources, pig iron was slightly inclined towards wire rod production in May, resulting in a slightly greater increase in wire rod production than rebar.