SHANGHAI, Mar. 14 (SMM) – Liuzhou I/S delivered 20,000 mt of hot-rolled coil and 20,000 mt of cold-rolled coil this week, with shipment of hot-rolled coil up 5,000 mt from the previous week. Liuzhou I/S reported poor sales of second-grade rebar quoted at RMB 3,720-3,740/mt in Liuzhou and Nanning, while coil prices were around RMB 4,000/mt and M&H plate prices were at RMB 4,100/mt, leaving larger profits for coil and plate transactions. Thus, the company opted to continue hot-rolled coil production but conduct maintenance to rebar and wire rod production lines.
Nevertheless, Liuzhou I/S also admitted that traders’ buying interest began weakening despite high prices. As such, the company’s marketing department proposed to adjust ex-works prices hot-rolled coils and is waiting for approval. Rumors are that Liuzhou I/S will cut prices for coil and plate this weekend. Meanwhile, increasing delivery of coil and plate from Liuzhou I/S caused M&H plate prices in Lecong to fall rapidly. Major clients of Liuzhou I/S also offered lower prices, partially due to increased supplies.