Tangshan Steel to reduce construction steel output
2023-03-10 08:30:17 [Print]
BEIJING (Asian Metal) 10 Mar 23 - As a branch of HBIS and one of major construction steel producers in North China, Tangshan Iron and Steel (Tangshan Steel) plans to produce around 110,000t of construction steel in March, down from 180,000t in February.
"Discouraged by scarce profit from construction steel production and the weak demand from downstream clients, we would cut the production by almost 38.9% MoM to 110,000t in March," said a source from the company, adding that they enlarge HRC production this month due to rising orders and higher profit. According to him, the company plans to resume normal construction steel production in April.
Tangshan Steel owns an annual production capacity of 3.0 million tons for construction steel. It recorded an output of approximately 2.0 million tons in 2022, down from 2.1 million tons in 2021. It recorded an output of nearly 360,000t in the first two months of this year, holding no stock at present.
In Tangshan, Hebei, the mainstream prices of rebar HRB400E Φ22mm hovered at RMB4,200-4,220/t (USD604-607/t) D/P on Thursday, up by RMB20/t (USD3/t) from Wednesday. Given firm prices of raw materials and slight demand recovery, construction steel prices would move up further in the coming week.
"Discouraged by scarce profit from construction steel production and the weak demand from downstream clients, we would cut the production by almost 38.9% MoM to 110,000t in March," said a source from the company, adding that they enlarge HRC production this month due to rising orders and higher profit. According to him, the company plans to resume normal construction steel production in April.
Tangshan Steel owns an annual production capacity of 3.0 million tons for construction steel. It recorded an output of approximately 2.0 million tons in 2022, down from 2.1 million tons in 2021. It recorded an output of nearly 360,000t in the first two months of this year, holding no stock at present.
In Tangshan, Hebei, the mainstream prices of rebar HRB400E Φ22mm hovered at RMB4,200-4,220/t (USD604-607/t) D/P on Thursday, up by RMB20/t (USD3/t) from Wednesday. Given firm prices of raw materials and slight demand recovery, construction steel prices would move up further in the coming week.
