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[SMM survey] The rolling line in Central China continues the trend of rising rebar and falling wire rod prices, with capacity utilization rate remaining low

iconJul 1, 2025 10:00
Source:SMM
[SMM survey: Rolling lines in Central China continue the trend of rising rebar and falling wire rod, with capacity utilization rate remaining low] During the survey period (June 24 - June 30), the operating rate of rebar rolling lines in steel mills in the Central China region remained stable, while the capacity utilization rate increased; the capacity utilization rate of wire rod rolling lines decreased.

Operating Rates and Forecasts for Building Material Production Lines at Steel Mills in Central China

During the survey period (June 24-30), the operating rate of rebar rolling lines at steel mills in Central China remained stable, while the capacity utilization rate increased; however, the capacity utilization rate of wire rod rolling lines decreased.

Source: SMM

During the survey period (June 24-30), the capacity utilization rate of rebar rolling lines in Central China increased slightly.

Specifically, some steel mills in Henan province arranged for pig iron to be diverted to round steel production due to better profits from specialty steel products, resulting in continued low rebar production. However, one rebar rolling line each in Hubei, Hunan, and Henan provinces resumed production during the previous period, and the actual number of operating days this period was higher than last week. As a result, rebar production in the region increased. In terms of in-plant inventory, there were differences in inventory levels among steel mills in different regions. Steel mills in Henan maintained low production levels, leading to a slight decrease in inventory, while in-plant inventory in other regions accumulated slightly, resulting in a slight overall increase in inventory.

It is expected that rebar production in Central China will increase slightly next week, mainly due to some steel mills preparing to readjust the capacity utilization rate of their rolling lines according to their monthly production plans, which will drive a slight increase in rebar production.

Source: SMM

During the survey period (June 24-30), the capacity utilization rate of wire rod in Central China decreased slightly.

Specifically, some steel mills in Henan province resumed bar and wire production as planned, and the surplus billets were redirected to rebar production, restoring the wire rod rolling lines to their previous production levels, resulting in a slight decrease in production. In terms of in-plant inventory, the demand for wire rod was moderate during the survey period, and the direct supply to end-users from steel mills improved WoW, driving a slight reduction in steel mill inventory.

It is expected that steel mills in Central China will maintain normal production rhythms next week, with both the operating rate and capacity utilization rate of wire rod remaining stable.

 

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