[SMM Survey] Construction Steel Production Increased Slightly, and Mill Inventories Continued to Decline

During the survey period (March 17–March 23), both the operating rate and capacity utilization rate of rebar in the Central China region increased to varying degrees; the operating rate of wire rod remained temporarily stable, while the capacity utilization rate edged up slightly.

During the survey period (March 17–March 23), the operating rate and capacity utilization rate of rebar rolling lines in the Central China region increased to varying degrees.Specifically, this was mainly because individual blast furnace steel mills in Hunan completed routine maintenance on their rolling lines and, as planned, resumed production on one rebar rolling line, driving a certain increase in regional rebar supply. On the mill inventory side, during the survey period, the pace of downstream construction site resumptions accelerated, steel mills' direct supply shipments were moderate, and inventory continued to decline.It is expected that in the next period, steel mills in Central China will generally maintain the current production pace, with rebar production remaining stable.

During the survey period (March 17–March 23), the operating rate of wire rod rolling lines in Central China remained temporarily stable, while the capacity utilization rate edged up slightly.Specifically, this was mainly because in the previous period, an individual steel mill in Hubei resumed production on one wire rod rolling line. The number of operating days in the current period was higher than in the previous period, driving growth in wire rod supply. On mill inventories, site construction resumptions improved during the survey period compared with earlier, and mill inventories declined slightly.Wire rod supply in Central China is expected to shift from growth to decline in the next period, mainly because an individual steel mill in Hubei is expected to suspend production on one wire rod rolling line at irregular times, leading to a YoY decline in the wire rod operating rate and capacity utilization rate.