China’s rebar output falls on tough curbs
Posted on 14 September 2021
Rebar production among the 137 Chinese steelmakers under Mysteel’s tracking including integrated mills and re-rollers declined over September 2-8 after four weeks of gains, down by 2.2% or 73,600 tonnes on week to reach 3.27 million tonnes, which was mainly due to intensified steel output curbs in many regions.
Also, the rebar output during the survey period fell significantly by 11.9% or 443,100 tonnes from that in the corresponding period of last year, which was 3.72 million tonnes, Mysteel’s statistics showed.
During the week, both rebar rolling capacity utilization and the operational rate among the surveyed producers decreased too, with the former dipping by 1.6 percentage points on week to 71.7%, while the latter dropped by 3.3 percentage points on week to 61.6%, also according to Mysteel’s surveys.
Nonetheless, confidence in the domestic steel market was lifted by the production curtailments and expectations of better demand going forward. The country’s national price of HRB400E 20mm dia rebar was assessed by Mysteel at a 3.5-month high of Yuan 5,525/tonne ($857/t) and including the 13% VAT as of September 10, or up for the third straight week by another Yuan 168/t on week.
Over September 6-10, the spot trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 steel traders under Mysteel’s monitoring increased for the third week in a row, rising by 8,197 tonnes/day or 3.8% on week to an average of 225,719 t/d.
Rebar inventories at the 137 steel producers under Mysteel’s tracking reversed down by 5.6% or 191,900 tonnes on week to 3.2 million tonnes as of September 8. Meanwhile, the tonnage at commercial warehouses in the 35 Chinese cities that Mysteel monitors dwindled for the sixth consecutive week, declining by 3.3% or 257,000 tonnes on week to 7.5 million tonnes as of September 9.
Table 1: Rebar Production Survey by Region by Sept 8
Table 2: Wire Rod Production Survey by Region by Sept 8
Table 3: Rebar Production Survey by Process by Sept 8
Table 4: Wire Rod Production Survey by Process by Sept 8
Table 5: Mills' Rebar and Wire Rod Stocks by Region by Sept 8
Table 6: Rebar and Wire Rod Stocks Survey by Process by Sept 8
Source : Mysteel Global