[SMM Survey] Central China Rolling Lines Weekly Survey: Construction Steel Production Continues Sharp Decline, Rebar and Wire Rod Inventories Show Diverging Trends

During the survey period from December 2 to December 8, both the operating rate and capacity utilization rate of rebar rolling lines at steel mills in the Central China region declined; similarly, the operating rate and capacity utilization rate of wire rod rolling lines also decreased.

During the survey period (December 2–December 8), the decline in the operating rate of rebar rolling lines in the Central China region slowed down, but production accelerated downward. Specifically, multiple steel mills in Hubei continued to suspend production for maintenance on their rebar rolling lines, and the number of operating days in this period was lower than in the previous period, resulting in a stable regional operating rate but a sharp drop in production. Additionally, a steel mill in Hunan began its annual maintenance, simultaneously halting one rolling line, which contributed to the decline in the operating rate. In terms of in-factory inventory, regional performance varied significantly: in Henan, supply remained stable, but demand was affected by the futures decline last Friday, leading to poor shipment performance and slight inventory buildup. However, Hunan and Hubei saw substantial supply reductions, leading to rapid inventory drawdowns in these regions. Overall, in-factory inventory in the region continued to decline.

Currently, multiple steel mills in the region are under maintenance, with no immediate plans to resume production in the short term. Therefore, rebar production in the Central China region is expected to remain low and fluctuate in the next period.

During the survey period (December 2–December 8), the operating rate of wire rod rolling lines in the Central China region continued to decline. Specifically, regional performance varied slightly: in Hunan, blast furnace production at individual steel mills returned to normal, leading to a slight increase in production. In contrast, some steel mills in Hubei initiated new maintenance plans at the beginning of the month, resulting in a significant drop in production. In terms of in-factory inventory, regional performance also differed: Hubei experienced a sharp decline in production, accompanied by a reduction in wire rod inventory at mills. However, both Hunan and Henan saw poor wire rod shipment performance, leading to slight inventory buildup in these areas. Overall, this shifted the trend of in-factory inventory from decline to increase.

Wire rod rolling line production in the Central China region is expected to see a slight decline in the next period, mainly due to the shutdown of two wire rod rolling lines in Hubei during the current period. These lines are expected to remain under maintenance for some time, resulting in fewer operating days in the next period and a decrease in the capacity utilization rate.