SHANGHAI, Jul 10 (SMM) – Hot-rolled steel production across 25 major Chinese steel mills in July is expected to increase by 7% from the realised output in June as production at mills recovered after environmental limitations or maintenance works ended and as mills stepped up their hot-rolled product proportion on high profit margins, SMM learned.
Low profits on exports, however, limited the overall increase in July with planned output for the international market down 6% from June’s realised volume and that for the domestic market up 7.9%.
In north China, the surveyed mills are expected to produce 4.7 million mt of hot-rolled coil in July, up 3% from a month ago. Planned volumes for exports shrink 63,000 mt to 214,000 mt. Baotou Steel, Angang, Tonghua Steel, Chenggang, Tangsteel and Bayi Steel are all about to increase their hot-rolled steel production with Tonghua and Bayi cutting their rebar production.
Separately, two 4,038 m³ blast furnaces at Angang are under maintenance in turns during June 6-August 5. Its 5,500 mm plate production line was under maintenance during June 6-23, while another 1,580 mm hot-rolling line would undertake maintenance from July 30.
Hot-rolled production at Benxi Steel, Shougang and Hansteel, however, is likely to drop. Shougang’s #2 2,650 m³ blast furnace will undertake maintenance from July 26 for some 50 days with 6,500 mt of daily average molten iron output being affected.
Surveyed mills in the east are expected to produce 3.14 million mt of hot-rolled coil this month, up 13% from June. Planned volumes for exports are expected at 332,000 mt, up 160,000 mt. Those mills include Rizhao Steel, Laigang, Shagang, Ningbo Steel, Shandong Steel and Maanshan Steel.
Small blast furnaces at Shagang may undergo maintenance in turns this month after its rolling lines resumed normal operation from maintenance in June. This is likely to have minimal impact on the actual production of steel products, the mill told SMM.
Surveyed mills in the central and south are estimated to produce 1.36 million mt of hot-rolled coil in July, up 11% from a month ago, with exports up 10,000 mt to 30,000 mt. Anyang Steel, however, cut its production by 11% to 290,000 mt as its three blast furnaces would undertake maintenance in turns for three to four months from July 4. The furnaces are 4,747 m³, 2,800 m³ and 2,200 m³, respectively.
Surveyed mills in west China, including Jiuquan Steel and Pangang, plan to produce 346,000 mt of hot-rolled coil this month, down 10% from June.
Hot-rolled production at Pangang is expected to fall by 12% to 263,000 mt as its 1,250 m³ blast furnace would undergo month-long maintenance from mid-July. This is likely to affect average daily molten iron output by some 3,000 mt.
