Poor Rebar and Wire Rod Profitability; Performance Diverged Next Week

Published: Aug 18, 2026 10:23

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During the survey period (August 11–August 17), the operating rate of regional rebar rolling lines was flat, while the capacity utilization rate edged up.

During the survey period (August 11–August 17), the operating rate of regional rebar rolling lines was flat, while the capacity utilization rate edged up. Specifically, steel mill production diverged during the period. In Hunan, a few steel mills made minor production cuts due to poor profitability; in Henan, some steel mills shifted hot metal back to construction steel, lifting the capacity utilization rate slightly. As a result, supply increased marginally during the period. In terms of mill inventory, it turned from a decline to an increase, mainly because shipments weakened in Henan and Hunan due to rainy weather. Rebar supply was expected to decline in the next period, mainly because a few steel mills in Henan had blast furnace production resumption plans, with some hot metal diverted to HRC lines, lowering the rebar capacity utilization rate.
During the survey period (August 11–August 17), both the operating rate and the capacity utilization rate of wire rod in Central China were stable. During the period, steel mill profitability was poor, and wire rod rolling lines that had originally planned to resume production remained shut for maintenance, keeping overall supply temporarily stable. In terms of mill inventory, futures improved slightly this week, market sentiment recovered somewhat, steel mill shipments were moderate, and mill inventory continued to decline, easing inventory pressure slightly. Against the backdrop of weak demand in the off-season, wire rod production at steel mills was expected to remain stable in the next period.

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