Operating Rate and Forecast of Building Materials Production Lines in Central China's Steel Mills
During the survey period (May 6-12), both the operating rate and capacity utilisation rate of rebar rolling lines in Central China's steel mills declined, while the capacity utilisation rate of wire rod rolling lines increased.
Source: SMM
During the survey period (May 6-12), the operating rate and capacity utilisation rate of rebar rolling lines in Central China both decreased.
Specifically, during this period, individual steel mills in Henan enjoyed moderate profits and actively increased their capacity utilisation rates. However, at the same time, some steel mills in Hubei conducted blast furnace maintenance and halted a rebar rolling line, resulting in a slight decrease in the overall capacity utilisation rate of rebar and a reduction in supply. In terms of in-plant inventory, after the holiday, steel mills reduced production while traders gradually resumed their purchasing pace, leading to a shift from inventory increase to decrease.
It is expected that steel mills in Central China will maintain their current production pace next week, with rebar production remaining relatively stable.
Source: SMM
During the survey period (May 6-12), the capacity utilisation rate of wire rod rolling lines in Central China slightly increased.
Specifically, some steel mills in the region actively increased their capacity utilisation rates to supplement wire rod specifications, driving an increase in wire rod supply. In terms of in-plant inventory, after the holiday, the purchasing pace of agents improved significantly compared to during the holiday, leading to an overall decrease in in-plant inventory.
It is expected that the capacity utilisation rate of wire rod in Central China will continue to rise next week, mainly due to the planned temporary resumption of a wire rod rolling line by an individual steel mill in Hubei over the weekend, which will bring a certain increase in production.
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