[SMM Survey] Central China Rolling Line Weekly Survey: Oversold Futures Rebound Drives Synchronized Destocking of Wire Rod and Rebar Inventory

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

During the survey period (August 4 - August 10), the rebar operating rate in Central China remained stable, the capacity utilization rate increased, and the wire rod operating rate and capacity utilization rate both remained stable.

Data source: SMM

During the survey period (August 4 - August 10), the operating rate of rolling lines at steel mills in the region remained flat, but the capacity utilization rate turned from decline to growth.

Mainly, during the survey period, futures rebounded from an oversold condition, and market sentiment slightly recovered. Steel mills in Hubei and Henan chose to slightly increase the capacity utilization rate to maximize marginal benefits, driving supply growth. Inventory side, factory inventory turned from increase to decrease in this period, mainly because in the first half of the week futures performed relatively strong, improving the purchasing willingness of agents and downstream buyers.

Next period, rebar supply is expected to still see growth. Specifically, there is still room for slight improvement in the capacity utilization rate of rebar rolling lines at Henan steel mills.

Data source: SMM

During the survey period (August 4 - August 10), the wire rod operating rate and capacity utilization rate in Central China both remained stable.

Specifically, in the first half of the week futures performed relatively strong, market confidence was slightly boosted, steel mills' shipments were moderate, factory inventory continued to destock, inventory pressure slightly eased, and steel mills that had previously planned to reduce production readjusted their production plans and chose to maintain stable production.

Next period, wire rod supply is expected to see some growth, mainly because individual steel mills in Hubei have irregular production resumption plans, driving the operating rate and capacity utilization rate to rise simultaneously.

Data other than public information are all processed by SMM based on public information, market communication, and SMM's internal database models, for reference only, and do not constitute decision-making advice.