Operating Rates and Forecasts of Construction Steel Production Lines in Central China Steel Mills
During the survey period (March 11 to March 17), the operating rate of rebar rolling lines in Central China steel mills increased, while the capacity utilisation rate decreased; the operating rate of wire rod rolling lines decreased, while the capacity utilisation rate increased.
Data Source: SMM
During the survey period (March 11 to March 17), the operating rate of rebar rolling lines in Central China steel mills increased, while the capacity utilisation rate decreased.
Specifically, the number of operating rolling lines in Hunan and Henan remained unchanged this period, while one additional rolling line in Hubei started operation on Monday, slightly improving the capacity utilisation rate. However, since the newly operating rolling line did not produce in the previous period, the overall capacity utilisation rate in the region declined, leading to a decrease in rebar supply. Regarding in-plant inventory, due to the rise in futures prices last week, steel mills in the region experienced moderate shipments, resulting in a slight decrease in overall in-plant inventory.
Rebar production in Central China is expected to shift from a decline to an increase next week, primarily due to extended operating hours at certain steel mills in Hubei, which will lead to a rise in capacity utilisation rates.
Data Source: SMM
During the survey period (March 11 to March 17), the operating rate of wire rod rolling lines in Central China steel mills decreased, while the capacity utilisation rate increased.
Specifically, rolling lines in Hunan and Henan maintained normal production this period, while one rolling line in Hubei underwent temporary maintenance, slightly reducing the operating rate. Meanwhile, extended operating hours at certain steel mills in Hubei, combined with production adjustments at some steel mills in Hunan to increase coiled rebar supply, drove an increase in wire rod supply in the region. Regarding in-plant inventory, steel mills maintained normal shipments, and the in-plant inventory of wire rods continued to decline this period.
Wire rod production in Central China is expected to shift from an increase to a decrease in the next period, mainly due to reduced production caused by rolling line maintenance at certain steel mills in Hubei, leading to a decline in capacity utilisation rates.
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