Anyang Steel reduces CRC production
2024-04-08 08:32:40 [Print]
BEIJING (Asian Metal) 8 Apr 24 - Anyang Iron and Steel Co. (Anyang Steel), the largest CRC producer in Henan, plans to produce 50,000t of CRC in April, down from 70,000t in March.
"Discouraged by the sales pressure and the narrowing profits, we slow down the operation of the only CRC production line this month and transfer more iron melt to HGI coil and silicon steel production. As a consequence, the output of CRC would see the MoM decline of 20,000t to 50,000t in April," revealed a sales official from Anyang Steel. In the meantime, the source revealed that downstream manufactures maintain low operating rates dragged by insufficient orders, and thus the demand for CRC remains weak. Besides, traders keep inactive in placing orders seeing the high inventories.
Based on an annual production capacity of 1.4 million tons, Anyang Steel roughly produced 1.3 million tons of CRC in 2023, and it aims at 1.3 million tons in 2024. The mill produced about 180,000t of CRC in the first three months of this year, without any inventories at present.
The present prevailing price of CRC DC01 1.0mm*1,250mm*C stands at RMB4,020/t (USD556/t) D/P in warehouse Anyang, down by RMB20/t (USD3/t) from that before the Tomb Sweeping Day holiday (April 4-6). The market is full of bearish atmosphere dragged by the high inventories and the soft demand, and traders keep eager to conclude deals to avoid potential risks.
"Discouraged by the sales pressure and the narrowing profits, we slow down the operation of the only CRC production line this month and transfer more iron melt to HGI coil and silicon steel production. As a consequence, the output of CRC would see the MoM decline of 20,000t to 50,000t in April," revealed a sales official from Anyang Steel. In the meantime, the source revealed that downstream manufactures maintain low operating rates dragged by insufficient orders, and thus the demand for CRC remains weak. Besides, traders keep inactive in placing orders seeing the high inventories.
Based on an annual production capacity of 1.4 million tons, Anyang Steel roughly produced 1.3 million tons of CRC in 2023, and it aims at 1.3 million tons in 2024. The mill produced about 180,000t of CRC in the first three months of this year, without any inventories at present.
The present prevailing price of CRC DC01 1.0mm*1,250mm*C stands at RMB4,020/t (USD556/t) D/P in warehouse Anyang, down by RMB20/t (USD3/t) from that before the Tomb Sweeping Day holiday (April 4-6). The market is full of bearish atmosphere dragged by the high inventories and the soft demand, and traders keep eager to conclude deals to avoid potential risks.
