[SMM survey] Some steel mills resume production. Rebar supply in Central China increased WoW this week.

Operating Rate and Forecast of Building Materials Production Lines in Central China's Steel Mills

During the survey period (May 20-26), the capacity utilisation rate of rebar rolling lines in Central China increased; the operating rate of wire rod rolling lines remained flat, but the capacity utilisation rate increased.

Data source: SMM

During the survey period (May 20-26), the capacity utilisation rate of rebar rolling lines in Central China increased.

Specifically, individual steel mills in Hubei resumed production, driving up the overall operating rate and capacity utilisation rate. In Henan, some steel mills resumed regular rebar production levels as orders for round steel were largely fulfilled, leading to an increase in production this week. In terms of in-plant inventory, steel mills increased their supply this week, while agents' enthusiasm for picking up goods was average, and direct supply changes were relatively small, resulting in a slight accumulation of in-plant inventory.
It is expected that most steel mills in Central China will continue to maintain their current production pace for rebar next week. However, due to individual steel mills having more actual operating days than the previous period, overall production will increase slightly.

Data source: SMM

During the survey period (May 20-26), the weekly production of wire rod in Central China increased on a WoW basis,with some steel mills in Hubei temporarily resuming production of a wire rod rolling line over the weekend, leading to a slight increase in overall production. In terms of in-plant inventory, market demand was average, and inventory decreased slightly.
It is expected that the capacity utilisation rate of wire rod in Central China will decline next week, mainly due to irregular maintenance at individual steel mills in Hubei, resulting in a decrease in overall operating hours.

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