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

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 rebar production to normal levels as orders for round steel were basically fulfilled, leading to an increase in production this week. In terms of in-plant inventory, steel mills' supply increased 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, the overall production will increase slightly.
During the survey period (May 20-26), the weekly production of wire rod in Central China increased on a WoW basis. Some steel mills in Hubei temporarily resumed production of a wire rod rolling line over the weekend, driving up the overall production slightly. 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.