[SMM Survey] Central China Rolling Mill Weekly Survey: Capacity Utilization Rate for Rebar and Wire Rod Collectively Rises, Plant Inventory Trends Diverge

During the survey period (January 6–January 12), the operating rate of rebar and wire rod rolling lines at steel mills in the Central China region remained stable, while the capacity utilization rate increased slightly.

During the survey period (January 6–12), the operating rate of rebar rolling lines in Central China remained stable, while the capacity utilization rate increased slightly.

Specifically, production conditions varied slightly across regions this week. In Hunan, production remained stable. In Henan, certain steel mills continued maintenance due to weaker order intake for bar steel compared to other steel products, leading to a decrease in operating days and a slight decline in the capacity utilization rate. Meanwhile, in Hubei, some steel mills resumed production after maintenance in the previous period, resulting in more operating days and an increase in the capacity utilization rate. Overall, rebar supply saw a slight increase.

In terms of mill inventory, futures rose sharply during the survey period, boosting market trading activity and reducing inventory at some mills. However, due to significant production resumptions at certain mills in Hubei, inventory accumulation outpaced consumption, leading to a slight increase in overall regional inventory.

Rebar production in Central China is expected to continue growing in the next period, mainly driven by the planned resumption of two rolling lines at certain steel mills in Hubei, which will collectively raise both the operating rate and capacity utilization rate.

Survey Period (January 6–January 12), Central China's wire rod rolling line operating rate remained stable, while the capacity utilization rate saw a slight increase.

This was mainly due to the resumption of wire rod rolling lines at individual electric furnace mills in Hubei, with more operating days in the current period compared to the previous one, leading to a slight rise in wire rod production. In terms of mill inventories, the futures surged significantly during the survey period, boosting market sentiment and speculative demand, causing wire rod inventories in the region to shift from an increase to a decrease.

It is expected that steel mills in the region will maintain their current production pace in the next period, with wire rod output remaining relatively stable.