Xinsteel to halt HRC production
2023-03-15 08:17:18 [Print]
BEIJING (Asian Metal) 15 Mar 23 - Xinyu Iron and Steel Group Co. (Xinsteel), one of the major HRC producers in Central China, plans to suspend the only 1,580mm HRC production line for 7 days in April, with the output to reduce by about 14,000t a day.
"Restricted by the unclear price trend, we will halt the HRC production line for around 7 days in April, with the starting date uncertain, and the output in April would see the MoM decline of about 100,000t to 320,000t," disclosed a sales official from Xinsteel. In the meantime, the source disclosed that the mill transfers around 2,000t of iron melt a day from steel plate production to HRC production this month, with the daily iron metal supply of HRC achieving 16,000t a day. "We even sell steel billet for the more considerable profit," added the source.
Reporting an annual HRC production capacity of 5.2 million tons, Xinsteel might produce 1.24 million tons of HRC in the first quarter of 2023, against 4.7 million tons in 2022. Xinsteel holds no stock right now.
The present mainstream price of HRC Q235B 5.5mm*1,500mm*C stands at RMB4,490/t (USD652/t) D/P in warehouse Shanghai, up by RMB30/t (USD4/t) compared with Monday. End users hold back from purchasing facing the continuous price increases, but the demand from downstream industries recovers gradually.
"Restricted by the unclear price trend, we will halt the HRC production line for around 7 days in April, with the starting date uncertain, and the output in April would see the MoM decline of about 100,000t to 320,000t," disclosed a sales official from Xinsteel. In the meantime, the source disclosed that the mill transfers around 2,000t of iron melt a day from steel plate production to HRC production this month, with the daily iron metal supply of HRC achieving 16,000t a day. "We even sell steel billet for the more considerable profit," added the source.
Reporting an annual HRC production capacity of 5.2 million tons, Xinsteel might produce 1.24 million tons of HRC in the first quarter of 2023, against 4.7 million tons in 2022. Xinsteel holds no stock right now.
The present mainstream price of HRC Q235B 5.5mm*1,500mm*C stands at RMB4,490/t (USD652/t) D/P in warehouse Shanghai, up by RMB30/t (USD4/t) compared with Monday. End users hold back from purchasing facing the continuous price increases, but the demand from downstream industries recovers gradually.
