[SMM survey] Rebar prices rise while plate prices fall in Central China, in-plant inventory accumulates

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

During the survey period (May 27 - June 2), the operating rate and capacity utilisation rate of rebar rolling lines in steel mills in Central China both increased, while the capacity utilisation rate of wire rod rolling lines decreased.

Data source: SMM

During the survey period (May 27 - June 2), the capacity utilisation rate of rebar rolling lines in Central China increased.

Specifically, in Hubei, individual steel mills had many undelivered orders due to the impact of previous production halts, and to ensure production progress, their capacity utilisation rates increased this week. In Henan, some steel mills resumed production on an additional rebar rolling line due to sufficient billets in-plant, leading to an increase in rebar production. On the in-plant inventory side, steel mills' supply increased this week, while downstream demand performed moderately due to the impact of the Dragon Boat Festival holiday, 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. Only a few steel mills will have more actual operating days than the previous period, driving a slight increase in capacity utilisation rate and overall production.

Data source: SMM

During the survey period (May 27 - June 2), the weekly production of wire rod in Central China decreased MoM.

This was mainly due to irregular maintenance at individual steel mills in Hubei, which led to a decrease in capacity utilisation rate and an overall reduction in wire rod supply. On the in-plant inventory side, as market demand gradually transitions into the off-season, combined with a slight decrease in market trading activity during the Dragon Boat Festival holiday, wire rod in-plant inventory accumulated slightly.

It is expected that steel mills in Central China will maintain their current production pace next week, with relatively stable wire rod production.

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