Ningbo Steel to reduce HRC production
2023-04-26 08:14:56 [Print]
BEIJING (Asian Metal) 26 Apr 23 - Ningbo Iron and Steel Co. (Ningbo Steel), the largest HRC producer in Zhejiang, plans to produce 330,000t of HRC in May, down from 370,000t in April.
"We will suspend one of the three heating furnaces in May, and thus slow down the operation of the only 1,780mm HRC production line. The output in May would see the MoM decrease of 40,000t to 330,000t," disclosed a sales official from Ningbo Steel. In the meantime, the source revealed that they moved down HRC EXW prices for May production by RMB200/t (USD29/t), with the regular grade at RMB4,600/t (USD666/t). "Supported by orders from regular clients, we do not burden with sales pressure now," stated the source, but he shows little confidence in the market prospect and worries a further price decline in May seeing the slow recovery in demand.
Based on an annual production capacity of 4.4 million tons, Ningbo Steel roughly produced 1.1 million tons of HRC in the first quarter of 2023, against 4.2 million tons or so in 2022. The mill holds no stock right now.
Presently, the mainstream price of HRC Q235B 5.5mm*1,500mm*C hovers at RMB3,950/t (USD572/t) D/P in warehouse Shanghai, down by RMB40/t (USD6/t) from Monday. Discouraged by the continuous price decreases, end users tend to hold back from purchasing, and the market runs slowly.
"We will suspend one of the three heating furnaces in May, and thus slow down the operation of the only 1,780mm HRC production line. The output in May would see the MoM decrease of 40,000t to 330,000t," disclosed a sales official from Ningbo Steel. In the meantime, the source revealed that they moved down HRC EXW prices for May production by RMB200/t (USD29/t), with the regular grade at RMB4,600/t (USD666/t). "Supported by orders from regular clients, we do not burden with sales pressure now," stated the source, but he shows little confidence in the market prospect and worries a further price decline in May seeing the slow recovery in demand.
Based on an annual production capacity of 4.4 million tons, Ningbo Steel roughly produced 1.1 million tons of HRC in the first quarter of 2023, against 4.2 million tons or so in 2022. The mill holds no stock right now.
Presently, the mainstream price of HRC Q235B 5.5mm*1,500mm*C hovers at RMB3,950/t (USD572/t) D/P in warehouse Shanghai, down by RMB40/t (USD6/t) from Monday. Discouraged by the continuous price decreases, end users tend to hold back from purchasing, and the market runs slowly.
