Production of Construction Materials in Central China Rose Steadily, While Mill Inventories Continued to Decline

During the survey period (March 10–March 16), the capacity utilization rate of rebar and wire rod rolling lines in the Central China region increased to varying degrees.

During the survey period (March 10–March 16), the operating rate of rebar rolling lines in Central China remained temporarily stable, while the capacity utilization rate edged up.
Specifically, this was mainly because EAF steel mills had intensively resumed production of rebar rolling lines in the previous period. The number of operating days in the current period was higher than in the previous period, driving a continued increase in rebar production. On plant-side inventory, during the survey period, the pace of downstream construction-site resumptions accelerated, and rigid-demand purchases improved WoW; coupled with phased market moves in futures mid-week, market trading sentiment improved somewhat, and overall inventory declined.
Rebar production in Central China is expected to continue increasing in the next period, mainly because the rolling-line rotation maintenance at certain blast furnace mills in Hunan has ended, and they are expected to resume production of one rebar rolling line as planned, driving the operating rate and capacity utilization rate higher in tandem.

During the survey period (March 10-March 16), wire rod supply in Central China continued to increase.
On the one hand, EAF steel mills in the region had resumed production of wire rod rolling lines on a concentrated basis in the previous period, and the number of operating days in the current period was higher than in the previous period, driving up the capacity utilization rate of wire rod. On the other hand, some steel mills in Hubei resumed production of one wire rod rolling line intermittently as planned to meet order demand, lifting the operating rate of rolling lines. Under the combined impact, the increase in wire rod supply was significant. In terms of mill inventories, performance diverged slightly across regions in the current period. Mill inventories in Hubei and Hunan remained stable, while inventories in Henan declined markedly, mainly because local end-use demand recovered relatively quickly and, stimulated by the rise in futures, distributors' willingness to purchase improved, driving inventory destocking at mills.
Wire rod supply in Central China is expected to continue increasing in the next period, mainly because some steel mills in Hubei resumed production of one wire rod rolling line in the current period, and the number of operating days in the next period will be higher than in the current period, driving up the capacity utilization rate of wire rod.