Shanxi Jianlong Steel cuts construction steel output
2023-04-07 07:44:37 [Print]
BEIJING (Asian Metal) 7 Apr 23 - As a major construction steel producer in Shanxi, Jianlong Iron and Steel Co. (Shanxi Jianlong Steel) stops one rebar production line from the beginning of this month, with output reduced by nearly 3,000tpd.
"We stopped one rebar production line since the beginning of this month and allocated more iron melt to HRC production for higher profit," said a source from Shanxi Jianlong Steel, adding that they showed less confidence in construction steel market outlook due to stagnant demand from downstream industries. They plan to produce almost 220,000t of construction steel in April, down from 310,000t in March.
Shanxi Jianlong Steel owns an annual production capacity of 3.8 million tons for construction steel and recorded an output of roughly 3.5 million tons in 2022. It produced about 870,000t of the material in the Q1 of this year. It has an inventory of nearly 80,000t at present.
On Thursday, the mainstream price of rebar HRB400E Φ18-22mm in Shanxi hovered at around RMB4,020/t (USD584/t), down by RMB20/t (USD3/t) from last trading day. Upon bearish attitudes from participants and weak demand from downstream industries, construction steel prices would fall further in coming two days.
"We stopped one rebar production line since the beginning of this month and allocated more iron melt to HRC production for higher profit," said a source from Shanxi Jianlong Steel, adding that they showed less confidence in construction steel market outlook due to stagnant demand from downstream industries. They plan to produce almost 220,000t of construction steel in April, down from 310,000t in March.
Shanxi Jianlong Steel owns an annual production capacity of 3.8 million tons for construction steel and recorded an output of roughly 3.5 million tons in 2022. It produced about 870,000t of the material in the Q1 of this year. It has an inventory of nearly 80,000t at present.
On Thursday, the mainstream price of rebar HRB400E Φ18-22mm in Shanxi hovered at around RMB4,020/t (USD584/t), down by RMB20/t (USD3/t) from last trading day. Upon bearish attitudes from participants and weak demand from downstream industries, construction steel prices would fall further in coming two days.
