Dazhou Steel to reduce construction steel output
2023-04-25 08:28:26 [Print]
BEIJING (Asian Metal) 25 Apr 23 - As a major construction steel producer in Southwest China, Sichuan Dazhou Iron and Steel Co. (Dazhou Steel) plans to halt one rebar production line for 5-day facility maintenance from May 1, with output reduced by around 4,400tpd.
"In order to stop prices from falling further, we decided to reduce production from May 1 by stopping one rebar production line," said a source from the company, adding that their output for construction steel would decrease by nearly 25,000t to 260,000t in May. According to him, most steel mills tried to cut production to give positive mentality to the market and stop prices from falling further.
Dazhou Steel owns an annual production capacity of 3.5 million tons for construction steel. It recorded an output of roughly 3.1 million tons in 2022 and 800,000t in the Q1 of this year. Currently it has an inventory of about 10,000t.
In Chengdu, Sichuan, the mainstream prices of rebar HRB400E Φ20mm stood at around RMB3,700/t (USD536/t) on Monday, down by RMB30/t (USD4/t) from last Sunday. Given slow market performance and bearish sentiment from market participants, construction steel prices would fall further in coming two days.
"In order to stop prices from falling further, we decided to reduce production from May 1 by stopping one rebar production line," said a source from the company, adding that their output for construction steel would decrease by nearly 25,000t to 260,000t in May. According to him, most steel mills tried to cut production to give positive mentality to the market and stop prices from falling further.
Dazhou Steel owns an annual production capacity of 3.5 million tons for construction steel. It recorded an output of roughly 3.1 million tons in 2022 and 800,000t in the Q1 of this year. Currently it has an inventory of about 10,000t.
In Chengdu, Sichuan, the mainstream prices of rebar HRB400E Φ20mm stood at around RMB3,700/t (USD536/t) on Monday, down by RMB30/t (USD4/t) from last Sunday. Given slow market performance and bearish sentiment from market participants, construction steel prices would fall further in coming two days.
