Operating Rates and Forecast of Construction Steel Production Lines in Central China Steel Mills
During the survey period (January 13 to January 20), the operating rates and capacity utilisation rates of rebar rolling lines in Central China steel mills both declined, while wire rod production increased slightly, and operating rates decreased.
Data Source: SMM
During the survey period (January 13 to January 20), the operating rates and capacity utilisation rates of rebar rolling lines in Central China steel mills both declined.
Specifically, this period saw EAF steel mills in Hubei Province begin their winter break, with four additional rolling lines undergoing maintenance, leading to a continued decline in overall production. In terms of in-plant inventory, spot prices in the market rose slightly, driven by the futures market, which boosted winter stockpiling enthusiasm. Coupled with reduced supply, in-plant inventory decreased slightly this week.
Rebar production in Central China is expected to continue declining next week, as EAF steel mills in major areas of Henan Province begin their winter break, with two additional rolling lines undergoing maintenance, resulting in a further decline in overall regional production.
Data Source: SMM
During the survey period (January 13 to January 20), the operating rates of wire rod rolling lines in Central China steel mills declined, while capacity utilisation rates increased slightly.
Specifically, this period saw EAF steel mills in Hubei Province begin their winter break, with one additional rolling line undergoing maintenance. However, the number of production days exceeded the maintenance days, leading to a slight increase in overall production. In terms of in-plant inventory, prices rose slightly during the survey period. However, due to limited demand for wire rod, in-plant inventory increased slightly this week.
Wire rod production in Central China is expected to increase slightly in the next period, as one rolling line in Hubei resumes production, while electric furnace mills in Henan suspend production for Chinese New Year maintenance, with one additional rolling line undergoing maintenance. However, the production impact of maintenance is expected to be smaller than the additional output from resumed production, resulting in a slight increase in overall regional production.
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