Environmental protection is coming on strong, and steel mills have to stop production for maintenance.
Category: Company News
Aug 27,2021
The annual national building materials steel mill weekly production survey data is fresh out! The capacity utilization rates of rebar and wire rod show a divergence, with rebar remaining stable and wire rod slightly increasing. The inventory of building materials in the mills has slightly decreased, and steel prices initially suppressed then rose. The specific situation is as follows:
▍1. Steel Mill Production Situation
This week, the survey covered 139 national building materials steel mills, with a weekly rebar capacity of 4.5617 million tons, 305 production lines, 229 actual operating lines, a weekly operating rate of 75.1%, an increase of 0.3% week-on-week; the actual weekly output was 3.2197 million tons, a decrease of 0.05 million tons week-on-week, with a weekly capacity utilization rate of 70.6%, almost flat week-on-week, an increase of 3.8% year-on-year, and higher than the average in 2016 by 1.9%.
In terms of wire rod, the weekly capacity is 2.2442 million tons, with 169 production lines and 121 actual operating lines, resulting in a weekly operating rate of 71.6%, a decrease of 0.6% week-on-week; the actual weekly output was 1.4059 million tons, an increase of 0.37 million tons week-on-week, with a weekly capacity utilization rate of 62.6%, an increase of 0.2% week-on-week, an increase of 1.5% year-on-year, and higher than the average in 2016 by 0.8%.
▍2. Steel Mill Inventory Situation
The total inventory of building materials in national steel mills is approximately 2.6986 million tons, which is a decrease of approximately 179100 tons week-on-week, down by about 6.22%, and down by about 19.78% year-on-year. Among them, the total inventory for rebar is approximately 2.2172 million tons, which decreased by approximately 109500 tons week-on-week (down by about 4.70%) and decreased by about16 .52% year-on-year; for wire rod it totals approximately480000 tons , which decreased by approximately69700tonsweek -on -week (downbyabout12 .64%)anddecreasedbyabout31 .98%year -on -year.
▍3.Conclusion
This week's national steel prices initially suppressed then rose; the current price is ¥4361.1 per ton , up ¥92 .73 per ton from last week , an increaseof2 .2%. It is understood that currently steel mill profits remain optimistic , and production enthusiasm is relatively high; however , considering environmental inspections and strict checks , steel mills may voluntarily increase shutdowns for maintenance . It is expected that next week's rebar and wire rod capacity utilization rates will maintain their current levels.
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