Hot-Rolled Coil Production Scheduling Remains High in March

SHANGHAI, Mar. 12 (SMM) – Steelease sources show that production scheduling of hot-rolled coil for March hit 8.325 million mt, up 535,000 mt or 6.87% from February’s level. Although there were fewer working days in February, the number for March casts a shadow over the hot-rolled coil market given the limited orders reported this month.

Scheduling in north China increased 320,000 mt in March, while that in east China was up 170,000 mt. However, as resources from north China sold better, hot-rolled coil market in east China came under larger pressures. Besides, traders in east China also have to repay bank loans in March, which further tightens their cash flows. As such, prices in the region will unlikely show improvement through March. In south China, as oversupply pressure will moderate, and cost for resources in the region is expected to rise, south China market should outperform east China.