Hot-rolled coil supplies to expand 0.73% in Jul as margins recover

Published: Jul 9, 2019 11:47
Output is expected to grow 0.73% from Jun to 9.59 million mt in Jul

SHANGHAI, Jul 9 (SMM) – Production of hot-rolled coil across major steelmakers in China is expected to only inch up in July, as increases from a shift from cold-rolled production, maintenance recovery and wider margins will be largely offset by anti-smog production curbs.

Those mills plan to produce a total of 9.59 million mt of HRC this month, up 0.73% from realised output of 9.52 million mt in June, showed an SMM survey.

About 625,000 mt would be exported, and this is up 4.5% from a month ago. Volumes slated to enter domestic markets are likely to grow 0.5% to 8.97 million mt.

About 300,000 mt of hot-rolled products have been produced via production lines that were originally designed for cold-rolling since June, as cold-rolled products incur losses.

HRC production in July is also likely to receive a boost from a recovery from maintenance at smelters.  

Improved production enthusiasm will also account for the anticipated growth in HRC production, as production curbs in Tangshan and a trade truce between the US and China bolstered spot prices and recovered steelmaker margins.

HRC production from Tangshan, however, is expected to sharply fall this month, amid deepened curbs across the region to fight air pollution.

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 for 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
Supply Gap Persists in Vietnamese Market, Spot Lead Traded at High Premiums
Jun 5, 2026 11:08
Supply Gap Persists in Vietnamese Market, Spot Lead Traded at High Premiums
Read More
Supply Gap Persists in Vietnamese Market, Spot Lead Traded at High Premiums
Supply Gap Persists in Vietnamese Market, Spot Lead Traded at High Premiums
[Ex-China Lead Market Dynamics] It was learned that the recent environmental protection inspections on secondary lead in the Vietnamese market had temporarily come to an end, and some lead smelters had gradually resumed production. However, in the face of the current primary lead supply gap, spot lead in the local market continued to maintain high premiums. According to the latest information, the CIF premium for Vietnamese lead ingots with Pb≥99.99% in June had reached $180/mt as a common transaction price, compared to around $165/mt in May.
Jun 5, 2026 11:08
Nanyang Zhongjie Receives Approval for Waste Lead-Acid Battery Collection Project
May 27, 2026 14:15
Nanyang Zhongjie Receives Approval for Waste Lead-Acid Battery Collection Project
Read More
Nanyang Zhongjie Receives Approval for Waste Lead-Acid Battery Collection Project
Nanyang Zhongjie Receives Approval for Waste Lead-Acid Battery Collection Project
[Waste Lead-Acid Battery Collection Enterprise Updates] Recently, the Xinye Branch of the Nanyang Municipal Ecology and Environment Bureau in Henan Province officially approved the Environmental Impact Assessment Report for the waste lead-acid battery collection, storage, and transfer project of Nanyang Zhongjie Environmental Protection Technology Co., Ltd. (Wan Xin Huan Shen [2026] No. 8). The project will construct a comprehensive workshop integrating weighing, loading and unloading, and storage, with designated areas for intact batteries, dedicated storage rooms for damaged batteries, and temporary hazardous waste storage rooms, with a designed annual collection and transfer capacity of 5,000 mt of waste lead-acid batteries.
May 27, 2026 14:15
Dongying Xinsanyuan's 200,000 mt Lead-Acid Battery Recycling Project on Track for 2026 Completion
May 19, 2026 17:28
Dongying Xinsanyuan's 200,000 mt Lead-Acid Battery Recycling Project on Track for 2026 Completion
Read More
Dongying Xinsanyuan's 200,000 mt Lead-Acid Battery Recycling Project on Track for 2026 Completion
Dongying Xinsanyuan's 200,000 mt Lead-Acid Battery Recycling Project on Track for 2026 Completion
[Secondary Lead Enterprise Updates] It was reported that the 200,000 mt lead-acid battery environmental protection utilization project of Dongying Xinsanyuan Environmental Protection Technology Co., Ltd. was under orderly construction and progressing on schedule, and was expected to be completed and put into operation before the end of 2026. As a key project in Dongying City, Shandong Province, the project had a total investment of 480 million yuan, covering an area of 103 mu. Once completed, it will fill the regional gap in the harmless treatment and resource utilization of waste lead-acid batteries, injecting new momentum into regional green circular development.
May 19, 2026 17:28
Hot-rolled coil supplies to expand 0.73% in Jul as margins recover - Shanghai Metals Market (SMM)