SHANGHAI, Apr 16 (SMM)—An SMM survey showed that 35 steel makers in China plan to produce a total of 10.06 million mt of hot-rolled coils and plates in April, up 2.3%, or 227,600 mt, from the realised output in March.
The output of hot-rolled coils and plates for domestic sales will expand 0.79%, or 73,000 mt from the month before to 9.29 million mt in April, while that for export will shrink8.66%, or 73,000 mt to 770,000 mt.
HRC output to rise across most areas, but to fall in south central China
North China: Planned output of hot-rolled coils and plates=5.17 million mt, +137,600 mt/2.74%; exports=390,000 mt, -153,000 mt/28.18%
East China: Planned output of hot-rolled coils and plates=2.82 million mt, +231,000 mt/8.92%; exports=380,000 mt, +80,000 mt/26.67%
South Central China: Planned output of hot-rolled coils and plates=1.75 million mt, -160,000 mt/8.38%; no exports
West China: Planned output of hot-rolled coils and plates=324,000 mt, +19,000 mt/6.22%; no exports
China’s output of hot-rolled coils and plates is likely to rise slightly in April. Decent profits encourage steel mills to step up production. HRC profits averaged 887 yuan/mt in east China as of April 12. In addition, eased production restrictions in Tangshan and fewer maintenance across leads to the rise in planned output.
Although HRC output will rise in April, steel makers in Hebei have not been fully restored to normal operation and the output for export remains high. Downstream users start to make losses as HRC prices continue to rise, which will prompt them to slow procurements in the short term, but downstream demand will be strong in the long run.
