[SMM Survey] Central China Rolling Line Weekly Survey: Screw and Plate Production Increases, Next Week's Performance Expected to Diverge

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

During the survey period (July 14–July 20), the operating rate of rebar and coiled rebar in Central China remained stable, while the capacity utilization rate edged up.

Source: SMM

During the survey period (July 14–July 20), the operating rate of rebar in Central China remained stable, while the capacity utilization rate edged up.

This period's changes were concentrated in Henan. Specifically, some electric furnace mills in the region, facing persistently poor profitability, chose to reduce operating hours, leading to a corresponding decline in the rolling line capacity utilization rate. Meanwhile, certain multi-product blast furnace steel mills in the local area, due to unsatisfactory orders for hot-rolled coil, switched to producing rebar, which drove a slight increase in rolling line capacity utilization. Overall, the increase outweighed the decrease, resulting in rebar production edging up this week. On the mill inventory side, mainly due to weaker futures performance in the second half of the week, steel mills sold fewer shipments, and combined with increased supply, overall mill inventory edged up slightly from the previous period.

In the next period, rebar supply in Central China is expected to remain stable, with steel mills in the region basically maintaining their current production pace.

Source: SMM

During the survey period (July 14–July 20), the operating rate of wire rod rolling lines at steel mills in Central China remained stable, while the capacity utilization rate rose somewhat.

Specifically, some electric furnace mills in Henan reduced operating hours, and rolling line capacity utilization also edged down slightly. However, local blast furnace steel mills, facing weak orders for hot-rolled coil, switched to producing building materials. Meanwhile, in Hubei, certain blast furnace mills resumed production intermittently as planned on a wire rod rolling line, significantly boosting the supply of coiled rebar in the region. After meeting monthly supply requirements, the Hubei blast furnace mills halted the wire rod rolling line again, so the operating rate remained unchanged this week. On the mill inventory side, under supply growth pressure, mill inventory accumulated slightly.

It is expected that wire rod supply in Central China will decrease in the next period, mainly because Hubei steel mills have completed their monthly supply plans. In the next period, the wire rod rolling line will remain idled, resulting in fewer operating days compared to this period, leading to a corresponding decline in the regional capacity utilization rate.

All data other than publicly available information are processed by SMM based on public information, market communication, and SMM's in-house database models. They are for reference only and do not constitute decision-making advice.