About 35% Of Chinese HRC Steel Mills Make Profits, Exports Likely To Fall Sharply In June

Published: Jun 13, 2023 11:17

Source: SMM

Save

SHANGHAI, Jun 13 (SMM) – HRC futures prices closed down 0.82% at 3763 yuan/mt yesterday June 12.

SHANGHAI, Jun 13 (SMM) – HRC futures prices closed down 0.82% at 3763 yuan/mt yesterday June 12. Spot prices also fell. About 35% of steel mills reported profits of 100-200 yuan/mt after coke price cuts. HRC exports are expected at 596,000 mt in June, down 6.44% from actual exports in May. Domestic demand was also weak amid sluggish PPI and CPI. Fundamentals will hardly improve soon. Market is expecting economic stimulus policies after negative economic data. Major state-owned banks have also cut deposit rates last Friday. HRC prices will move rangebound in the short term.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

Centralized Production Resumptions Conclude, Limiting Further Supply Increases from EAF Steel Mills

As of March 24, the operating rate of 50 electric-furnace steel mills nationwide mainly producing construction materials was 40.42%, up 1.78% WoW from the previous period; the capacity utilization rate was 41.75%, up 1.88% WoW from the previous period; and daily average production of construction materials was 93,000 mt, up 4,200 mt WoW.

3 hours ago

MMi Daily Iron Ore Report (March 27)

The iron ore futures rose in early trading before gradually retreating during the day. The main contract I2605 ultimately closed at 812 yuan/ton, down 0.49% from the previous trading session.

3 hours ago

[SMM Daily HRC Trading] Spot Trading Changed Relatively Little

[SMM Daily HRC Trading] On March 27, the total daily HRC trading volume of sample enterprises in four cities tracked by SMM (Shanghai, Lecong, Tianjin, and Ningbo) was 14,490 mt, up 360 mt day on day, or 2.5%, with solar-calendar YoY growth of 28.57% and lunar-calendar YoY growth of 9.77%.

3 hours ago