Shougang Group to cut HRC production
2023-03-21 08:18:22 [Print]
BEIJING (Asian Metal) 21 Mar 23 - Shougang Group, the leading HRC producer in North China, estimates that the output of HRC would reduce to 530,000t in April from 630,000t in March.
"We will suspend one HRC production line in Jingtang Branch for around 5 days in April, and thus the output of HRC in April would witness the MoM decline of 100,000t to 530,000t," noted a sales official of Shougang Group. Meanwhile, the source disclosed that the mill tends to hike the proportion of fine steel stimulated by the rising purchasing activities of end users, while it had to increase the proportion of carbon HRC in the past two months dragged by the insufficient orders.
Reporting an annual HRC production capacity of 18.4 million tons, Shougang Group might record the output of around 1.78 million tons in the first quarter of 2023, against 5.5 million tons more or less in 2022. Shougang Group does not hold any stock at present.
Presently, the prevailing price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB4,360/t (USD632/t) D/P in warehouse Tangshan, Hebei, down by RMB20/t (USD3/t) from last Sunday. The demand from downstream industries improves gradually, but end users keep inactive in purchasing discouraged by the price decline.
"We will suspend one HRC production line in Jingtang Branch for around 5 days in April, and thus the output of HRC in April would witness the MoM decline of 100,000t to 530,000t," noted a sales official of Shougang Group. Meanwhile, the source disclosed that the mill tends to hike the proportion of fine steel stimulated by the rising purchasing activities of end users, while it had to increase the proportion of carbon HRC in the past two months dragged by the insufficient orders.
Reporting an annual HRC production capacity of 18.4 million tons, Shougang Group might record the output of around 1.78 million tons in the first quarter of 2023, against 5.5 million tons more or less in 2022. Shougang Group does not hold any stock at present.
Presently, the prevailing price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB4,360/t (USD632/t) D/P in warehouse Tangshan, Hebei, down by RMB20/t (USD3/t) from last Sunday. The demand from downstream industries improves gradually, but end users keep inactive in purchasing discouraged by the price decline.
