Central China Rolling Line Weekly Survey: Steel Mills Rotate Production of Rebar and Wire Rod, Divergence in Production Trends

During the survey period (December 23–29), both the operating rate and capacity utilization rate of rebar rolling lines in the central China region increased. Specifically, recent improvements in steel mill profits led to the resumption of one rebar rolling line each in Hubei and Henan as planned, while most other mills maintained production levels from the previous week, resulting in continued growth in rebar production during this period. On the inventory side, as year-end approaches, end-users have focused mainly on capital recovery, showing low willingness to stockpile. Amid the traditional demand off-season, market performance remained mediocre, and the pace of inventory reduction at steel mills slowed, leading to varying degrees of inventory accumulation across the central China region.

Rebar production in central China is expected to continue growing in the next period, primarily because output from the rolling lines that resumed production in the current period will be fully reflected in the next period. Additionally, certain steel mills in Hubei plan to restart rebar rolling lines in early January. However, as some mills in Henan are scheduled to undergo maintenance shutdowns at the end of December, the operating rate of rolling lines is projected to remain basically flat compared to the current period.

During the survey period (December 23–29), both the operating rate and capacity utilization rate of wire rod rolling lines in the central China region declined. This was mainly due to certain mills in Hubei implementing rotating breaks on wire rod lines while restarting rebar rolling lines, leading to a decrease in regional wire rod production. In terms of mill inventory, stockpiles in central China decreased slightly. Hubei experienced a minor inventory decline due to rolling line maintenance, Henan saw a slight reduction thanks to considerable shipments over the previous weekend, and Hunan’s inventory remained basically unchanged from the previous period.

Wire rod rolling line production in central China may increase slightly in the next period, mainly because certain mills in Hubei are resuming wire rod production, which will raise both the operating rate and capacity utilization rate simultaneously.