Rebar Production Remained Stable, Mill Inventories Underwent Seasonal Destocking

During the survey period (April 7–April 13), the rebar rolling line operating rate and capacity utilization rate in the Central China region maintained the same production pace as the previous period, and rebar production supply remained stable.

On the mill inventory side, mill inventory shifted from accumulation to decline this period, with slight divergence across different regions. Specifically, some steel mills in Hubei saw a slight inventory buildup, mainly due to frequent rainy weather in the region during the survey period, which hindered transportation of rebar shipments and led to a marginal increase in mill inventory. In Hunan and Henan, downstream construction sites still had rigid demand to purchase, and inventory drew down normally.

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

During the survey period (April 7–April 13), the wire rod rolling line operating rate in the Central China region remained temporarily stable, while the capacity utilization rate declined slightly.

Specifically, during the survey period, some steel mills in Henan experienced sluggish wire rod shipments. Steel mills adjusted their production plans, diverting part of the hot metal toward HRC, resulting in a reduction in wire rod supply. During the survey period, wire rod mill inventory continued to decline, mainly because production cuts at steel mills within the region were relatively significant, driving inventory drawdown.

In the next period, the wire rod rolling line operating rate in Central China is expected to decline while the capacity utilization rate is expected to rise. This is mainly because an individual steel mill in Henan plans to intermittently shut down one wire rod rolling line, leading to a decline in the operating rate. However, since the shutdown timing is relatively late in the period, the overall operating days in the next period will be higher than in the current period, resulting in a slight increase in the capacity utilization rate.