[SMM Survey] Accidents and Holiday Impact Lead to Short-Term Pullback in Central China Rebar Production

Published: Feb 24, 2026 18:16

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During the survey period (February 10 to February 23), the operating rates and capacity utilization rates of rebar and wire rod rolling mills in the Central China region decreased to varying degrees.

During the survey period (February 10–23), both the operating rate and capacity utilization rate of rebar rolling lines in the central China region declined. Specifically, one additional EAF steel mill suspended production during the period, halting its rebar rolling line simultaneously. Meanwhile, individual steel mills suspended blast furnace operations and associated construction steel rolling lines due to a fire incident, leading to a drop in capacity utilization. Combined, these factors resulted in a slight decrease in rebar production during the period. In terms of mill inventory, the market was largely closed during the Chinese New Year holiday, leading to rapid accumulation of steel mill inventories.
In the next period, blast furnace steel mills in central China are expected to largely maintain their current production pace, while some EAF steel mills in the region have production resumption plans, which will drive simultaneous increases in both operating rate and capacity utilization rate. Rebar production is expected to shift from decline to growth.

During the survey period (February 10–23), both the operating rate and capacity utilization rate of wire rod rolling lines in the central China region decreased to varying degrees, mainly due to the suspension of wire rod rolling lines at two blast furnace steel mills in Hunan. At the same time, two EAF steel mills in Hubei that had suspended production in the previous period planned to resume production in early March, resulting in fewer operating days in the current period and a noticeable decline in wire rod production. In terms of mill inventory, the market was largely closed during the Chinese New Year holiday, leading to rapid accumulation of steel mill inventories.
In the next period, individual blast furnace steel mills in central China are scheduled to resume production as planned, and additional EAF steel mills in the region will restart operations, leading to synchronous growth in both the operating rate and production of wire rod rolling lines in central China.

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.

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