[SMM Survey] Central China Rolling Line Weekly Survey: Steel Mill Maintenance Reductions Increase, Building Materials Production Continues to Decline

Operating Rate and Forecast of Building Material Production Lines at Central China Steel Mills

During the survey period (July 7 – July 13), the rebar operating rate and capacity utilization rate in Central China edged down, while the coiled rebar operating rate remained stable and its capacity utilization rate edged down slightly.

Data Source: SMM

During the survey period (July 7 – July 13), both the rebar operating rate and capacity utilization rate in Central China edged down.

Specifically, most steel mills in the region maintained their current production pace. A few steel mills in Hunan chose to do maintenance on one blast furnace and simultaneously shut down a rebar rolling line due to poor profitability. Meanwhile, some electric furnace mills in Henan reduced their operating hours, resulting in a significant reduction in regional supply. Inventory side, end-users mostly maintained purchasing as needed. The weather in this period was moderate, and rigid demand purchases improved slightly. Combined with the significant supply reduction, inventory showed a slight destocking compared to the previous period.

In the next period, rebar supply in Central China is still expected to see a reduction. This is mainly because, in this period, electric furnace mills in Henan lowered their operating hours mid-week, and the operating hours in the next period will be overall shorter than in this period, leading to a slight decline in capacity utilization rate.

Data Source: SMM

During the survey period (July 7 – July 13), the wire rod rolling line operating rates at steel mills in Central China remained temporarily stable, while the capacity utilization rate edged down slightly.

This was mainly because some electric furnace mills in Henan showed poor profitability and chose to reduce their operating hours, leading to a reduction in wire rod supply in the region. Mill inventory side, during the survey period, market wire rod shipments showed mediocre performance, and inventory basically remained stable with minor fluctuations.

In the next period, wire rod supply from steel mills in Central China is expected to see a slight increase. This is mainly because, in the next period, a few steel mills in Hubei plan to intermittently resume production on a wire rod rolling line, leading to a simultaneous increase in the rolling line operating rate and capacity utilization rate in the region. Supply volume and operating rate may remain stable.

All data other than publicly disclosed information is processed by SMM based on public information, market communication, and SMM’s internal database model, and is for reference only, not constituting any investment decision advice.