Decline in wire rod and rebar production expected in China

Several electric furnace steel mills in Henan and Hubei halted production, which had a negative impact on overall production and operating rates. In addition, the completion of the annual pre-inspections of steel plants in Henan, Hubei and Hunan led to a decline in wire rod production, although the production rate remained stable.

Moreover, during the survey period (30 January-5 February), wire rod production and operating rates in central China decreased. Several electric furnace steel mills in Henan and Hubei halted production at the end of January, resulting in lower overall production and operating rates. As the market entered the Chinese New Year holiday, the majority went into holiday mode and market transactions became sluggish. At the end of this period, mill inventories continued to increase.

Looking ahead, rebar and wire rod production in central China is expected to continue to decline as electric furnace steel mills close and rebar supply is expected to decrease.