According to SMM statistics, mill inventory and social inventory showed slight divergence this period, as production cuts at steel mills led to a slight decrease in mill inventory, while social inventory continued to build up. Total building materials inventory was 8.4734 million mt, up 35,500 mt MoM (+0.42%), and the pace of inventory buildup further slowed.

As of July 21, the operating rate among 50 EAF steel mills mainly producing construction steel nationwide was 36.62%, up 0.04 percentage point WoW; the capacity utilization rate was 36.50%, down 0.06 percentage point WoW; daily average production of construction steel stood at 81,300 mt, down 100 mt WoW.

According to SMM statistics, both mill inventories and social inventories saw inventory buildup to varying degrees. Total construction steel inventories reached 8.4379 million mt, up 41,800 mt WoW, or up 0.50% WoW, with the pace of inventory buildup continuing to slow.

[SMM Survey: Central China Wire Rod Weekly Survey: Rebar and Wire Rod Production Increases, Next Week's Performance to Diverge] During the survey period (July 14 - July 20), the operating rate of rebar and wire rod in the Central China region remained stable, while the capacity utilization rate edged up.

This week, the ferrous metals sector rebounded slightly overall, with divergence among products: iron ore and hot-rolled coil/rebar performed relatively strong, while coke was relatively weak. Early in the week, affected by sluggish end-use consumption in the off-season and continued pressure on steel mill profits, futures for all products consolidated and weakened; mid-week, driven by the combined effects of rumors of a BHP worker strike, the repeated US-Iran geopolitical conflicts, and rising expectations of environmental protection-driven production restrictions in Tangshan, iron ore and hot-rolled coil/rebar spot and futures prices saw a period of stabilization and rebound. However, from a fundamental perspective, the off-season characteristics on the demand side remained......

This week, finished steel rebounded slightly after consolidating at lows, while coking coal and coke showed overall satisfactory performance. At the start of the week, with no significant changes in fundamentals or news, ferrous metals continued to consolidate at lows; in the second half, market rumors emerged that BHP’s union announced a work stoppage action. Expectations of short-term supply tightness from the potential stoppage, combined with rising energy costs due to Middle East conflicts, drove a rebound in iron ore prices, which in turn lifted ferrous metals; online auctions for coking coal showed mixed results...

This week, finished steel continued its gradual decline, while raw materials began to stabilize, with coking coal rebounding to some extent. During the week, rumors about a coal mine accident in Shanxi and customs clearance restrictions at the Mongolian border spread, boosting sentiment. Coupled with the China Mineral Resources talks, the raw materials side rebounded from lows. In the second half of the week, as rumors of maintenance at steel mills across various regions emerged, negative feedback expectations intensified somewhat, and raw materials pulled back. Approaching the weekend, however, the 10th round of coke price increases was initiated, pushing coking coal and coke futures higher. In the spot market, the off-season characteristics of end-users became increasingly evident, with the market restocking at low prices as needed. With spot prices remaining relatively firm, the spot-futures price spread continued to widen...

This week, ferrous metals diverged, with coking coal and coke extending their strength, iron ore making some concessions, and finished steel moving sideways. Early in the week, rumors about coal mine safety inspections continued to swirl, and expectations of supply tightness intensified, driving coking coal to its daily limit up. Against weak supply-demand fundamentals, iron ore took a path of conceding to coking coal and coke, while finished steel edged higher in a narrow range; later in the week, data on the five major steel products were released, with HRC inventory destocking continuing, the off-season effect on construction steel demand emerging, inventory destocking narrowing, and overall inventory pressure for finished steel also beginning to slowly accumulate......

During the survey period (May 26–June 1), the rebar rolling line operating rate in the Central China region remained stable, while the capacity utilization rate edged up.

During the survey period (May 19–May 25), in the Central China region, the rebar operating rate rose while the capacity utilization rate declined, and both the wire rod operating rate and capacity utilization rate decreased.