[SMM Survey] Central China Rolling Lines Weekly Survey: Annual Maintenance of Rolling Lines, Production Expected to Continue Declining Next Week

During the survey period (November 18–November 24), most steel mills in the Central China region maintained their current production pace. Only a few electric furnace mills in Henan experienced phased shutdowns due to clean production inspections, leading to a slight decline in rebar production. Regarding in-factory inventory, the WoW change in steel mill inventories in the Central China region was basically flat, though there were slight variations among provinces. In Hubei, some mills increased their own inventories and reduced supply to distributors to ensure future direct supply volumes, as they had maintenance plans. In Henan and Hunan, in-factory inventories decreased slightly, as some mills reduced production due to losses or suspended operations for inspections.
Next week, rebar production and operating rates at steel mills in the Central China region are expected to decline significantly. This is mainly because two blast furnace steel mills in Hubei plan to conduct annual maintenance on their rebar rolling lines at the end of November, while one EAF steel mill is scheduled to halt production from early December, leading to a decrease in the capacity utilization rate.

During the survey period (November 18–November 24), both wire rod production and operating rates in the Central China region declined. Specifically, a few steel mills in Hubei suspended their wire rod rolling lines during this period, while some electric furnace mills in Hunan halted production due to clean production inspections. On the inventory side, reduced mill supply combined with relatively stable wire rod demand resulted in a slight decrease in wire rod in-factory inventory this period.
Wire rod production in the Central China region is projected to decline significantly in the next period. This is mainly due to annual maintenance on wire rod rolling lines at certain mills in Hubei at the end of November, along with some mills continuing the maintenance status from the current period, leading to a corresponding drop in the operating rate.