Echeng Steel to reduce construction steel production

BEIJING (Asian Metal) 22 Mar 24 - Baowu Group Echeng Iron and Steel Co.Asian Metal Copyright Insiders expect Chinese construction steel prices to rise slightly in the coming week mainly supported by higher raw material prices and the price increase in futures market.Asian Metal Copyright (Echeng Steel), a major construction steel producer in Hubei, would cut the production to around 250,000t this month, said a source of the company.

"We plan to reduce the production of construction steel from about 280,000t in February to around 250,000t in March due to the increased inventory and continuous price decrease these days," explained the source. According to him, they have a stockpile of almost 160,000t in hand now, up from about 60,000t last month.

With three construction steel production lines and the annual production capacity of about four million tonnes, the company recorded an output of around three million tonnes last year and produced about 510,000t in Jan-Feb of 2024.

The mainstream prices of rebar HRB400E Φ20mm from Echeng Steel stood at about RMB3,520/t (USD489/t) in Wuhan on Thursday, the same as those on Wednesday. Insiders expect Chinese construction steel prices to rise slightly in the coming week mainly supported by higher raw material prices and the price increase in futures market.

.Asian Metal Copyright Echeng Steel, a major construction steel producer in Hubei, would cut the production to around 250,000t this month, said a source of the companyAsian Metal Copyright