China's July daily steel output may up 2% on restarts
Source: Mysteel
Jul 10, 2018 11:29
Daily steel output across China this month of the five key carbon steel products is likely to increase by 34,000 tonnes/day or 2% on month to 1.7 million t/d, according to Mysteel’s monthly survey of 216 steelmakers nationwide released on July 9. The five items are rebar, wire rods, plates and hot-rolled and cold-rolled coils.
Chinese steelmakers, especially those producing HRC and rebars, are actively preparing to resume full operations after completing routine maintenance or upgrading pollution control facilities as ordered by government inspectors, the survey found. At the same time, steel mills in Xuzhou city, Jiangsu province, East China are also showing signs of preparing to restart. Earlier last month all steelmakers in Xuzhou were ordered shut temporarily in an effort to reduce the level of toxic emissions, as Mysteel reported.
Among the five products, the largest contributor to the increase in production is seen as rebar, with daily output predicted to rise 24,000 t/d or 4.3% on month to 576,000 t/d in July. The next jump in output is likely to be for CRC, with daily output seen increasing 13,000 t/d or 10% on month to 137,000 t/d. The rolling capacity utilization rate among all surveyed mills is forecast to rise by 1.5 percentage points on month to 75.5% for July.
By region, the largest gain in daily finished steel output is expected to be in East China, where daily production will climb by 22,000 t/d on month, thanks to the progressive restart of Xuzhou mills. Xuzhou Jinhong Iron and Steel Co, a maker with a 1.3 million tonnes/year finished steel capacity, has passed inspection and has started debugging its equipment.
Industry watchers disclosed that steelmakers are placing emphasis on domestic sales but also hoping to generate sales in overseas markets as domestic steel prices have retreated. Mysteel’s national average price of HRB400 20mm diameter rebar, for example, declined by Yuan 65/tonne ($9.8/t) on month at Yuan 4,111/t including 16% VAT as of July 9.
The surveyed mills said they expect to see their export orders for these products to pick up by just 1.3% on month, however, as the international trade environment is complicated mainly due to the Sino-US trade friction.
For June, Mysteel found that daily output of the five steel products advanced by 21,000 t/d or 1.3% on month to 1.67 million t/d, with that of rebar increasing the most, rising by 11,000 t/d or 2% on month to 553,000 t/d. The rolling capacity utilization rate rose one percentage point on month to 74%.
Last month, these mills’ export orders dropped by 18% on month.
Written by Crystal Lu, lujq@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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