Rebar Output Fell Rapidly as Steel Mills Intended to Cut Production

SHANGHAI, May 4 (SMM) - Given the significant decline in rebar prices and the rising raw material inventory, the maintenance of steel mills in north, south-west and north-west China extended in light of the losses. EAF-based steel mills reduced the output significantly amid growing losses as the prices of finished steel fell far more than steel scrap. With more blast furnaces carrying out maintenance, the output cut is expected to increase 345,000 mt to 2,469,300 mt in May. The losses of EAF-based steel mills has not been reversed, which may further reduce the production of rebar. In terms of HRC, although the maintenance of some steel mills in north and east China have ended, the losses still weighed on the output. Therefore, the overall HRC output increased slightly last week. According to SMM research, the HRC output post the Labour Day holiday will fluctuate narrowly as the impact of new maintenance is limited.