Central China Rolling Mill Weekly Survey: Hubei Blast Furnace Production Resumptions Drive Increase, Next Period Production Expected to Rise

During the survey period (January 20–26), the operating rate of rebar rolling lines in steel mills in the Central China region declined, while the capacity utilization rate increased slightly; both the operating rate and capacity utilization rate of wire rod rolling lines remained stable.

During the survey period (January 20–26), the operating rate of rebar rolling lines in the Central China region decreased, but the capacity utilization rate rose modestly. Specifically, production conditions varied slightly across regions this week. In Hubei and Hunan, one rebar rolling line resumed production in the previous period, and the number of operating days in the current period exceeded that of the prior period, driving an increase in the capacity utilization rate. In Henan, however, some steel mills opted to temporarily halt one rebar rolling line due to relatively weak rebar sales and poor profitability, leading to a decline in the operating rate. Overall, the impact of the reduction was smaller than that of the increase, resulting in a slight rise in rebar supply. In terms of mill inventory, the market cooled significantly in the first half of the survey week, with procurement willingness low in most areas due to rain and snow, causing regional inventory to continue accumulating.
Rebar production in the Central China region is expected to continue growing in the next period, primarily because some steel mills in Hubei have plans to resume blast furnace operations, which may lead to the simultaneous restart of rebar rolling lines, driving a slight increase in both the operating rate and capacity utilization rate.

During the survey period (January 20–January 26), steel mills in the Central China region generally maintained their current production pace, with wire rod production remaining relatively stable.
In terms of mill inventory, wire rod demand in the central region performed weakly during the survey period, and the digestion rate was relatively slow, leading to a slight increase in regional wire rod inventory.
In the next period, wire rod production in Central China is expected to shift from stable to increasing, mainly due to production resumption plans for blast furnaces at individual steel mills in Hubei. One wire rod rolling line is expected to resume production simultaneously, driving a slight rise in both the capacity utilization rate and operating rate.