Echeng Steel to reduce construction steel output
2023-04-18 08:27:57 [Print]
BEIJING (Asian Metal) 18 Apr 23 - As one major construction steel producer in Hubei, Echeng Iron and Steel Co. (Echeng Steel), a branch of Baowu Group, estimated its output would reach nearly 300,000t in April, down from 340,000t in March.
"Discouraged by weak demand from downstream clients and scarce profit by producing construction steel, we decided to cut production by about 11.8% MoM in April," reported a source from Echeng Steel, adding that they remained more active in production for steel plate, from which they could gain more profit. According to him, due to slow market performance, construction steel prices dropped by almost RMB300/t (USD44/t) in the recent one month.
Echeng Steel has four construction steel production lines with an annual production capacity of 4.5 million tons. It recorded an output of roughly 3.6 million tons in 2022 and approximately 900,000t in the Q1 of this year. It does not hold stock at present.
In Wuhan, Hubei, prices of rebar HRB400E Φ20mm and wire rod HPB300 Φ8-10mm from Echeng Steel stood at around RMB3,920/t (USD570/t) and RMB4,160/t (USD605/t) respectively on Monday, both down by RMB30/t (USD4/t) from last Friday. Given falling prices of raw materials and weak demand from downstream clients, construction steel prices in Hubei would edge down further in coming two days.
"Discouraged by weak demand from downstream clients and scarce profit by producing construction steel, we decided to cut production by about 11.8% MoM in April," reported a source from Echeng Steel, adding that they remained more active in production for steel plate, from which they could gain more profit. According to him, due to slow market performance, construction steel prices dropped by almost RMB300/t (USD44/t) in the recent one month.
Echeng Steel has four construction steel production lines with an annual production capacity of 4.5 million tons. It recorded an output of roughly 3.6 million tons in 2022 and approximately 900,000t in the Q1 of this year. It does not hold stock at present.
In Wuhan, Hubei, prices of rebar HRB400E Φ20mm and wire rod HPB300 Φ8-10mm from Echeng Steel stood at around RMB3,920/t (USD570/t) and RMB4,160/t (USD605/t) respectively on Monday, both down by RMB30/t (USD4/t) from last Friday. Given falling prices of raw materials and weak demand from downstream clients, construction steel prices in Hubei would edge down further in coming two days.
