Shougang Group to decrease HRC production
2023-04-27 08:18:20 [Print]
BEIJING (Asian Metal) 27 Apr 23 - Shougang Group, the leading HRC producer in North China, plans to produce 500,000t of HRC in May, down from 530,000t in April.
"We will suspend the 2,600 square meter blast furnace for around 25 days from late May, with the iron melt supply to reduce by 6,000t a day. Therefore, will slow down the operation of the HRC production lines accordingly, with the output to cut by 30,000t to 500,000t or so in May," revealed a sales official from Shougang Group, who attributes the production cut to the losses and the downward price trend of HRC. Meanwhile, he disclosed that Shougang Group moved down the HRC concluding prices for April production by RMB240/t (USD35/t) on April 25. After the adjustment, the price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB4,110/t (USD594/t).
Based on an annual production capacity of 18.4 million tons for five HRC production lines (1,580mm, 1,580mm, 2,160mm, 2,250mm, MCCR), Shougang Group recorded the output of approximately 1.78 million tons in the first quarter of 2023, against 5.5 million tons or so in 2022. The mill holds no stock right now.
Currently, the mainstream price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB3,900/t (USD563/t) D/P in warehouse Tianjin, similar to Tuesday. Both traders and customers adopt pessimistic attitudes towards the market prospect and the market runs slowly.
"We will suspend the 2,600 square meter blast furnace for around 25 days from late May, with the iron melt supply to reduce by 6,000t a day. Therefore, will slow down the operation of the HRC production lines accordingly, with the output to cut by 30,000t to 500,000t or so in May," revealed a sales official from Shougang Group, who attributes the production cut to the losses and the downward price trend of HRC. Meanwhile, he disclosed that Shougang Group moved down the HRC concluding prices for April production by RMB240/t (USD35/t) on April 25. After the adjustment, the price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB4,110/t (USD594/t).
Based on an annual production capacity of 18.4 million tons for five HRC production lines (1,580mm, 1,580mm, 2,160mm, 2,250mm, MCCR), Shougang Group recorded the output of approximately 1.78 million tons in the first quarter of 2023, against 5.5 million tons or so in 2022. The mill holds no stock right now.
Currently, the mainstream price of HRC Q235B 4.75mm*1,500mm*C hovers at RMB3,900/t (USD563/t) D/P in warehouse Tianjin, similar to Tuesday. Both traders and customers adopt pessimistic attitudes towards the market prospect and the market runs slowly.
