[SMM Survey] Operating Rate of Rolling Lines in Central China Slightly Declined, Capacity Utilisation Rate Showed Divergent Trends

Operating Rates and Forecasts of Construction Steel Production Lines in Central China Steel Mills

During the survey period (January 6 to January 13), the operating rate of rebar rolling lines in Central China steel mills remained unchanged, while the capacity utilisation rate increased slightly. The capacity utilisation rate and operating rate of wire rod rolling lines both declined.

Data Source: SMM

During the survey period (January 6 to January 13), the operating rate of rebar rolling lines in Central China steel mills remained unchanged, while the capacity utilisation rate increased slightly.

Specifically, in Hubei Province, one new rolling line underwent maintenance while another resumed production, resulting in an overall stable operating rate and a slight increase in production. Regarding in-plant inventory, during the survey period, spot prices in the market weakened, end-use demand gradually declined, and speculative demand in the market also decreased, leading to a slight increase in overall steel mill inventory.

Rebar production in Central China is expected to decline next week, mainly due to the addition of three rolling lines undergoing maintenance in Hubei and one in Henan. This is primarily attributed to electric furnace shutdowns for the winter break, resulting in a reduction in overall regional production next week.

Data Source: SMM

During the survey period (January 6 to January 13), the operating rate and capacity utilisation rate of wire rod rolling lines in Central China steel mills declined.

Specifically, in Hubei Province, one new rolling line underwent maintenance, while the remaining operating rolling lines maintained the previous production pace, leading to an overall decline in production. Regarding in-plant inventory, during the survey period, spot prices in the market weakened, and agents showed low willingness for winter stockpiling. Despite reduced supply, in-plant inventory still increased slightly.

Wire rod production in Central China is expected to increase slightly in the next period. One rolling line in Hubei will resume production, while electric furnace mills in Hubei and Henan will shut down for Chinese New Year maintenance, with two additional rolling lines undergoing maintenance. However, the production impact of maintenance will be smaller than the additional output from resumed production, resulting in a slight increase in overall regional production.

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