[SMM Survey] Central China Rolling Line Weekly Survey: Rebar and Wire Rod Production Decreases, Steel Mills Cut Output

Central China Steel Mills Building Material Production Line Operating Rate and Forecast

During the survey period (July 28 - August 3), the rebar capacity utilization rate in Central China declined, and both the operating rate and capacity utilization rate of wire rod dropped.

Data source: SMM
During the survey period (July 28 - August 3), the operating rates of rolling lines at steel mills in the region remained flat this period, but capacity utilization rates declined. Specifically, the changes this period were mainly concentrated in Hubei and Henan. Mills in Henan faced significant shipment pressure and opted to reduce production, while mills in Hubei, driven by profitability, shifted to producing other higher-margin products, resulting in an overall reduction in supply.

On the inventory side, mill inventories edged up this period, mainly due to agents' low willingness to purchase amid weak futures performance.
Next period, mills have no plans to change production, and rebar supply is expected to remain stable.

Data source: SMM

During the survey period (July 28 - August 3), both the operating rate and capacity utilization rate of wire rod in Central China dropped.

Specifically, some blast furnace steel mills in Hubei and Hunan reduced rebar production and shifted to producing higher-margin products; in Henan, some electric furnace mills reduced operating hours due to declining profits, leading to lower production. On the inventory side, mill inventories turned from increase to decrease this period, mainly due to a significant reduction in local wire rod production.

Wire rod supply is expected to continue declining next period, mainly because a steel mill in Henan plans to reduce production next period due to shipment difficulties, leading to a lower rolling line capacity utilization rate.

All other data, except publicly available information, is based on public information, market communication, and SMM's internal database models, processed by SMM, and is for reference only, not constituting any decision-making advice.