SHANGHAI, Apr 28 (SMM) – A slew of Chinese steel mills, in east China, in particular, planned to resume from maintenance in May as steelmakers are encouraged to move up a gear amid a continued increase in demand.
This suggests that the maintenance impact on long steel production next month will ease significantly from that in April.
About 55,600 mt of long steel output, including rebar and wire rods, is estimated to be impacted in May due to mills overhaul. This fell 699,200 mt, or 93% from the affected volumes in April, showed an SMM survey based on steel mills maintenance schedule released as of April 27.
Rising downstream demand and improved shipments drove up rebar profits, and this caused the reduced maintenance at steel mills.
SMM survey showed that steelmakers in east China account for about 55.91% of the estimated supply increase to be driven by production resumption in May. These steel mills include Maanshan Iron & Steel, Anhui Changjiang Iron & Steel, and Fujian Sanbao Steel.
Investors in east China mostly turned cautious, as they anticipated limited upside room in downstream demand amid the further increase in supply.
