Rebar Increased While Coil Declined, Divergent Trends Emerged in Central China Rolling Lines

During the survey period (March 24–March 30), the operating rate of rebar in the Central China region remained temporarily stable, while the capacity utilization rate increased slightly; both the operating rate and capacity utilization rate of wire rod declined.

During the survey period (March 24–March 30), the operating rate of rebar rolling lines in Central China remained temporarily stable, while the capacity utilization rate increased slightly.
Specifically, some steel mills in Henan shifted part of their capacity to rebar rolling lines due to poor profitability of other steel products, driving a slight increase in regional rebar supply. As for mill inventories, futures were mainly weak last week, shipments from EAF steel mills were poor, and some blast furnace mills engaged in low-price sell-offs, so overall mill inventories continued to decline.

It is expected that steel mills in Central China will generally maintain the current production pace in the next period, with rebar production remaining stable.

During the survey period (March 24–March 30), both the operating rate and capacity utilization rate of wire rod rolling lines in Central China edged down slightly.
Specifically, this was mainly due to certain steel mills in Hubei intermittently suspending one wire rod rolling line as planned, resulting in some decline in wire rod supply. On inventories, during the survey period, futures trended weakly, market sentiment was relatively pessimistic, and trading activity was subdued. In addition, some regions were affected by rainy weather, and overall rigid-demand purchases were also limited. Therefore, plant inventories as a whole did not see any significant destocking.
Wire rod supply in Central China is expected to decline further in the next period, mainly because certain steel mills in Hubei intermittently suspended one wire rod rolling line during the current period, and the number of operating days in the next period will be fewer than in the current period, leading to a YoY decline in wire rod capacity utilization rate.