China Adds 6.7 Million Mt to Crude Steel Capacities in April -Shanghai Metals Market

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China Adds 6.7 Million Mt to Crude Steel Capacities in April

Data Analysis 02:31:05PM May 02, 2012 Source:SMM

Shanghai, May 2 (SMM) - According to Steelease data, China put approximately 6.7 million mt of new crude steel capacities into production in April, and this amounts to the total of new capacities during the first three months of 2012. Significant increases in crude steel capacities in April were due mainly to the coming online of some electric furnaces and converters. Steelease understands that China’s crude steel output will hit a new high in April, but the significant increase of new crude steel capacities will cause operating rates, which stood at high levels in March, to drop.

China New Crude Steel Capacities, Jan. - Apr. 2012

Steel Mill

Unit

Start-Up Time

Specification (Mt)

Capacity (Mt)

Shanxi Jincheng Steel Holding (Group) Co., Ltd.

Converter

Jan. 2012

80

100

Chengde I&S

Converter

Feb. 2012

120

110

Fujian Sansteel (Group) Co., Ltd.

Converter

Mar. 2012

120

110

Shaoguan I&S

Converter

Mar. 2012

130

120

Panzhihua I&S

Converter

Mar. 2012

120

110

Echeng I&S

Converter

Mar. 2012

130

120

China 22MCC Group Corporation Ltd.

Electric Furnace

Apr. 2012

220

200

Zhongtian Iron and Steel Group

Converter

Apr. 2012

120

110

Ma’anshan I&S

Converter

Apr. 2012

320

250

Shagang Group Anyang Yongxing Iron & Steel Co., Ltd.

Converter

Apr. 2012

120

110

Total

 

 

 

1340

 

Although China’s crude steel capacity in April is up 2.85 million mt over a year ago, the total amounts of new capacities during the first fourth months of 2012 dropped compared with the same period of last year. With increasingly steel capacity surplus, profits in the domestic steel industry will remain low for the foreseeable future, and in the long term, newly-constructed and completed crude steel capacities will drop gradually.

 

Steady production will be expected from those newly-commenced crude steel capacities, and this will improve China’s crude steel output in April. At present, most of domestic private steel mills, which are running at moderate profits, remain enthusiasm in production, and state-owned steel mills will also not halt or cut production, despite of losses at selected mills. Hence, Steelease expects China’s daily crude steel output to hit a new high in April.

Key Words:  crude steel   iron and steel   I&S 

China Adds 6.7 Million Mt to Crude Steel Capacities in April

Data Analysis 02:31:05PM May 02, 2012 Source:SMM

Shanghai, May 2 (SMM) - According to Steelease data, China put approximately 6.7 million mt of new crude steel capacities into production in April, and this amounts to the total of new capacities during the first three months of 2012. Significant increases in crude steel capacities in April were due mainly to the coming online of some electric furnaces and converters. Steelease understands that China’s crude steel output will hit a new high in April, but the significant increase of new crude steel capacities will cause operating rates, which stood at high levels in March, to drop.

China New Crude Steel Capacities, Jan. - Apr. 2012

Steel Mill

Unit

Start-Up Time

Specification (Mt)

Capacity (Mt)

Shanxi Jincheng Steel Holding (Group) Co., Ltd.

Converter

Jan. 2012

80

100

Chengde I&S

Converter

Feb. 2012

120

110

Fujian Sansteel (Group) Co., Ltd.

Converter

Mar. 2012

120

110

Shaoguan I&S

Converter

Mar. 2012

130

120

Panzhihua I&S

Converter

Mar. 2012

120

110

Echeng I&S

Converter

Mar. 2012

130

120

China 22MCC Group Corporation Ltd.

Electric Furnace

Apr. 2012

220

200

Zhongtian Iron and Steel Group

Converter

Apr. 2012

120

110

Ma’anshan I&S

Converter

Apr. 2012

320

250

Shagang Group Anyang Yongxing Iron & Steel Co., Ltd.

Converter

Apr. 2012

120

110

Total

 

 

 

1340

 

Although China’s crude steel capacity in April is up 2.85 million mt over a year ago, the total amounts of new capacities during the first fourth months of 2012 dropped compared with the same period of last year. With increasingly steel capacity surplus, profits in the domestic steel industry will remain low for the foreseeable future, and in the long term, newly-constructed and completed crude steel capacities will drop gradually.

 

Steady production will be expected from those newly-commenced crude steel capacities, and this will improve China’s crude steel output in April. At present, most of domestic private steel mills, which are running at moderate profits, remain enthusiasm in production, and state-owned steel mills will also not halt or cut production, despite of losses at selected mills. Hence, Steelease expects China’s daily crude steel output to hit a new high in April.

Key Words:  crude steel   iron and steel   I&S