SHANGHAI, Apr 26 (SMM) – Downstream consumption drove up new orders for hot-rolled coil in April, SMM learned. However, there were few large orders as most buyers purchased on demand due to rising prices of raw materials this month.
In the spot market, tight supplies across major markets held back sellers. More active transactions are likely to be seen in the short term as some downstream buyers stockpiled on April 25, SMM learned.
In south China, small-scale steel processing plants began to resume operation as environmental measures eased.
In the north, while large-scale companies mostly resumed regular operations, production at small processing plants remained in flux. It was heard that Hebei province will undergo a two-week environmental probe as inspection teams have established themselves in Hengshui, Cangzhou, Langfang, Qinhuangdao, and Dingzhou. Inspections are likely to end on May 5. Pickling plants in Bazhou city raised prices as inspectors target steel pickling. Pickling is common in the steelmaking process. It descales and cleans ferrous metals, copper, precious metals and aluminium alloys.
Orders from shipbuilding companies stayed firm in April. SMM learned that most new orders were riverboats under 100,000 mt. As consumption of refrigerators entered the high season from March to October, orders surged across major companies such as Haier, Hisense, and Midea. In the automobile industry, production and new orders held stable.
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