[SMM survey] Production of coiled rebar increased while that of rolled rebar decreased in Central China, with a significant surge in coiled rebar production

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

During the survey period (July 8-14), the operating rate and capacity utilization rate of rebar rolling lines at steel mills in Central China both declined, while the capacity utilization rate of wire rod rolling lines increased.

Source: SMM

During the survey period (July 8-14), the operating rate and capacity utilization rate of rebar rolling lines in Central China both decreased.

Specifically, in this period, an individual electric furnace mill in Hubei province chose to halt production of one rebar rolling line due to poor sales in the previous period. Meanwhile, an individual steel mill in Hunan province conducted planned maintenance on one rebar rolling line due to insufficient coal gas supply. As a result, rebar production in this period decreased. Regarding in-plant inventory, with a slight decrease in steel mill production this week and a significant rally in futures market prices mid-week, which spurred the release of downstream speculative demand, steel traders' enthusiasm for purchasing increased, leading to a slight decrease in in-plant inventory.

It is expected that rebar production in Central China will increase slightly next week, mainly due to the completion of rolling line maintenance in Hunan province and planned production resumptions, which will drive up the operating rate and capacity utilization rate of rebar rolling lines.

Source: SMM

During the survey period (July 8-14), the operating rate and capacity utilization rate of wire rod rolling lines in Central China both increased significantly this week.

Specifically, some steel mills in Henan province resumed production of blast furnaces and a wire rod rolling line as planned. Meanwhile, an individual steel mill in Hubei province resumed production of a wire rod rolling line at irregular intervals, driving up wire rod production significantly. Regarding in-plant inventory, influenced by the rally in futures market prices mid-week, the overall sales situation of wire rod was moderate. However, due to the significant increase in steel mill production, in-plant inventory increased slightly.

It is expected that wire rod production in Central China will pull back next week, mainly because the planned production of wire rod at steel mills in Hubei province has been achieved. Therefore, they have chosen to continue halting production of wire rod rolling lines to adapt to production, leading to a decrease in capacity utilization rate.

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