China Railway Equipment Manufacture cuts HRC output
2023-04-20 08:18:39 [Print]
BEIJING (Asian Metal) 20 Apr 23 - China Railway Equipment Manufacture, a major HRC producer in North China, plans to produce 500,000t of HRC in April, down from 600,000t in March.
"We suspended the 1,250mm HRC production line on April 9 and will resume production on April 23. Therefore, the output of HRC would witness the MoM decline of 100,000t to 500,000t in April," disclosed a sales official from China Railway Equipment Manufacture. Attributing the production cut to the sales pressure as well as losses, the source disclosed that both traders and end users remain inactive in purchasing discouraged by the downward price trend, and the mill even holds about 60,000t of stocks at present, while it does not hold any inventories normally.
Reporting an annual HRC production capacity of 9 million tons for two lines (1,250mm, 1,780mm), China Railway Equipment Manufacture recorded the output of approximately 1.65 million tons in the first quarter of 2023 and 6.8 million tons in 2022.
The current mainstream price of HRC Q235B 5.75mm*1,500mm*C hovers at RMB4,150/t (USD602/t) D/P in warehouse Tangshan, Hebei, down by RMB10/t (USD1.5/t) from Tuesday. The market runs slowly as end users remain cautious about purchasing discouraged by the continuous price declines as well as insufficient orders for final products.
"We suspended the 1,250mm HRC production line on April 9 and will resume production on April 23. Therefore, the output of HRC would witness the MoM decline of 100,000t to 500,000t in April," disclosed a sales official from China Railway Equipment Manufacture. Attributing the production cut to the sales pressure as well as losses, the source disclosed that both traders and end users remain inactive in purchasing discouraged by the downward price trend, and the mill even holds about 60,000t of stocks at present, while it does not hold any inventories normally.
Reporting an annual HRC production capacity of 9 million tons for two lines (1,250mm, 1,780mm), China Railway Equipment Manufacture recorded the output of approximately 1.65 million tons in the first quarter of 2023 and 6.8 million tons in 2022.
The current mainstream price of HRC Q235B 5.75mm*1,500mm*C hovers at RMB4,150/t (USD602/t) D/P in warehouse Tangshan, Hebei, down by RMB10/t (USD1.5/t) from Tuesday. The market runs slowly as end users remain cautious about purchasing discouraged by the continuous price declines as well as insufficient orders for final products.
