Chinese Steel Mills Plan To Cut Wire Rod Output In June In Favour Of Rebar As Poor House Construction Hurts Demand For Former While Latter Is Supported By Infrastructure Sector

Published: Jun 13, 2023 17:51

Source: SMM

Save

SHANGHAI, Jun 13 (SMM) –SMM survey of 56 key steel mills in China showed their planned rebar output in June is 11.34 million mt, an increase of 140,500 mt or 1.25% compared with the actual output in May; Their planned output of wire rod is 3.59 million mt in June, a decrease of 218,500 mt or 5.73% compared with the actual output in May.

Steel mills' profits improved in early June after rebar prices rebounded, with rebar in losses of 0-100 yuan/mt and profits of 0-200 yuan/mt. Despite weak demand in the off-season, most rebar steel mills have no plans to cut production in June due to low inventories on hand and healthy profits.

Many steel mills plan to cut output of wire rod in June in favour of rebar. Wire rod demand is weaker than in previous years due to falling demand from house construction, while rebar demand is slightly better than wire rod thanks to support from infrastructure sector.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Apr 30, 2026 22:29

[SMM Steel Market Flash] POSCO Targets 35%-40% Shareholder Return Based on Adjusted Net Income

According to POSCO’s Q1 2026 earnings call, the company has introduced its third interim shareholder return policy and shifted from a free-cash-flow-based approach to a more earnings-linked framework. The new policy targets a shareholder return ratio of 35%-40% of adjusted net profit attributable to controlling interests, to be delivered through a mix of cash dividends and share buybacks or cancellations. POSCO said the change is intended to improve payout visibility while balancing growth investment and shareholder returns.

Apr 30, 2026 22:29

Apr 30, 2026 22:27

[SMM Steel Market Flash] POSCO Says Middle East Tensions Continue to Squeeze Steel Margins

According to POSCO’s Q1 2026 earnings call, the ongoing US-Iran conflict has pushed up FX, oil, LNG, and logistics costs, creating clear pressure on steel margins. The company said that although sales volumes, production, and utilization rates recovered sequentially, raw material sourcing costs remain elevated due to disruptions linked to the Middle East situation, and this cost pressure is expected to continue into the second quarter.

Apr 30, 2026 22:27

Apr 30, 2026 18:50

[SMM Hot Topic] HRC Prices Rose MoM in April, Expected to Fluctuate at Highs Before Mid-May

Apr 30, 2026 18:50