[SMM survey] Rebar and coiled rebar prices rise in Central China, while coiled rebar production to surge next week?

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

During the survey period (July 1st - July 7th), the operating rate and capacity utilization rate of rebar rolling lines at steel mills in Central China both increased, while the capacity utilization rate of wire rod rolling lines remained stable.

Data source: SMM

During the survey period (July 1st - July 7th), the capacity utilization rate of rebar rolling lines in Central China increased slightly.

Specifically, there was no significant change in the production pace of steel mills in the region during this period. Only a few electric furnace mills in Hubei province chose to resume production of a rebar rolling line due to the recent increase in steel prices, which slightly improved their profits. This led to an increase in the operating rate and a slight increase in production. In terms of in-plant inventory, influenced by the anti-cut-throat competition initiative and rumors of crude steel production restrictions in Hebei and Southwest China during mid-week, the futures market surged significantly, and steel traders' enthusiasm for purchasing improved markedly, leading to a transfer of inventory from in-plant to social inventory.

It is expected that rebar production in Central China will increase slightly next week, mainly due to the resumption of production of a rolling line in Hubei province this week, more actual working days in the next period compared to the previous one, and an increase in capacity utilization rate.

Data source: SMM

During the survey period (July 1st - July 7th), steel mills in Central China will maintain a normal production pace this week, with the operating rate and capacity utilization rate of wire rod remaining stable.

In terms of in-plant inventory, influenced by the anti-cut-throat competition initiative and rumors of crude steel production restrictions in some regions during the survey period, the futures market surged significantly, and downstream speculative demand improved slightly, leading to a slight reduction in steel mills' inventory.

It is expected that wire rod production in Central China will increase significantly next week, mainly due to the production resumption plan of a blast furnace at some steel mills in Henan province, which will resume production of a wire rod rolling line to adapt to production. Meanwhile, some steel mills in Hubei province have irregular production resumption plans. Under the combined influence, the operating rate of wire rod will increase next week, driving an increase in production.

》Click to view SMM Metal Industry Chain Database