China's August rebar production decreased by 32.3%

China's rebar production in August reached 12.6 million tons, down by 32.3% y-o-y and 19.8% m-o-m, according to data from the National Bureau of Statistics (NBS). From January to August, China's total rebar production reached 129.7 million tons, down by 15.7% from the same period last year.

The significant decline in rebar production was attributed to both blast furnace and electric arc furnace steel mills scaling back operations amid continued margin losses and weak demand from buyers. Blast furnace producers' average loss on rebar sales was around 170 Yuan (USD 24.1) per ton in August, a slight improvement from July's average loss of 249 Yuan (USD 35.3).

China's spot rebar prices also declined during August, with HRB400E 20mm diameter rebar prices averaging 3,301 Yuan (468 USD) including VAT, down by 258 Yuan (36.6 USD) per ton compared to the July average. The price decline reflected sluggish demand for steel products, especially from the construction sector, which saw reduced activity during the summer season.

In terms of total steel production, China produced 925.7 million tons of finished steel in the first eight months of 2024, a modest 0.4% increase from a year earlier. However, 110.9 million tons of finished steel were produced in August, a 6.5% decrease y-o-y.