Tangshan Steel cuts HRC production
2023-04-25 08:15:33 [Print]
BEIJING (Asian Metal) 25 Apr 23 - Acting as one of the leading HRC producers in North China, Hebei Iron and Steel Group Co. (HBIS) Tangshan Steel Laoting Plant (Tangshan Steel), would produce 450,000t of HRC in April, down from 510,000t in March.
"Dragged by the sales pressure and losses, we slowed down the operation of the only 2,050mm HRC production line this month, and the output might see the MoM decrease of 60,000t to 450,000t," disclosed a sales official from Tangshan Steel. Meanwhile, he revealed that end users keep requiring for lower prices seeing the quick price drop in the market, but the mill refuses to cut prices burdening with losses. "We may take facility maintenance in May if prices keep going down," added the source.
Reporting an annual production capacity of 6 million tons, Tangshan Steel recorded the output of approximately 1.43 million tons in the first quarter of 2023, against 4.6 million tons or so in 2022. Presently, Tangshan Steel does not hold any stock.
The prevailing price of HRC Q235B 5.5mm*1,500mm*C stands at RMB3,880/t (USD563/t) D/P in warehouse Tangshan, Hebei, down by RMB40/t (USD6/t) compared with last Friday. Both traders and downstream customers adopt wait-and-see attitudes towards the market prospect discouraged by the downward price trend.
"Dragged by the sales pressure and losses, we slowed down the operation of the only 2,050mm HRC production line this month, and the output might see the MoM decrease of 60,000t to 450,000t," disclosed a sales official from Tangshan Steel. Meanwhile, he revealed that end users keep requiring for lower prices seeing the quick price drop in the market, but the mill refuses to cut prices burdening with losses. "We may take facility maintenance in May if prices keep going down," added the source.
Reporting an annual production capacity of 6 million tons, Tangshan Steel recorded the output of approximately 1.43 million tons in the first quarter of 2023, against 4.6 million tons or so in 2022. Presently, Tangshan Steel does not hold any stock.
The prevailing price of HRC Q235B 5.5mm*1,500mm*C stands at RMB3,880/t (USD563/t) D/P in warehouse Tangshan, Hebei, down by RMB40/t (USD6/t) compared with last Friday. Both traders and downstream customers adopt wait-and-see attitudes towards the market prospect discouraged by the downward price trend.
