Home / Metal News / Steel & Iron Ore / [the mentality of receiving orders in hot rolling mills collapsed first in June]
[the mentality of receiving orders in hot rolling mills collapsed first in June]
Jun 11,2019 18:50CST
The content below was translated by Tencent automatically for reference.

Then unilaterally:

According to the feedback of SMM survey, the overall order situation of steel mills in June is relatively stable, which is basically the same as that in May. Individual steel mills reflect that due to the influence of the plan of reducing cold rolling and increasing hot rolling, the order acceptance pressure of steel mills is higher. Among them,


A steel mill (southwest): compared with the May order, the hot rolling and building materials are basically flat, all in the full state, and the cold rolling order is slightly reduced (less than 10,000 tons).

B Steel works (East China): steel mills usually take orders once every 7 to 10 days according to the production situation, but as far as the current order situation is concerned, it is slightly lower than in May, but the impact is not great, and the steel mills are still in a state of full production.

C Steel works (North China): steel mills generally accept orders by long-term agreement. Now the market has little impact on long association orders, steel mill orders in June and May are relatively stable, and is currently in a state of full production, in the absence of maintenance and other unexpected circumstances, orders are expected to remain unchanged in July. (extra: recently, the 2 million ton cold rolling project of the steel plant has been officially put into production. The first phase of the total investment of 1.45 billion yuan, the construction of 1.2 million tons of acid rolling production line and ancillary facilities)

D Steel Plant (Central China): although the order situation is dominated by Changxie, due to the plan to convert the cold rolling base material to hot rolling (the planned output of hot coil in June is 700000 tons compared with + 40, 000 tons in May), the hot rolling output will increase, so the order pressure will be higher in June.


In terms of mentality:

Judging from the relevant downstream data (car production: the national narrow passenger car production in May was 1.471 million, down 23.2 per cent from the same period last year. Among them, the production of cars was 782000, down 21.1% from the same period last year, and 85000 from 23.9% from the same period last year, down 34.6% from the same period last year. In terms of car sales: retail sales of narrow passenger cars nationwide in May were 1.582 million, up 4.8 per cent from the previous month and down 12.5 per cent from the same period last year. Of these, 805000 cars were sold, down 13.2 percent from a year earlier to 669000 vehicles, down 9.6 percent from a year earlier to 108000 vehicles, down 22.9 percent from a year earlier. ), the performance of the plate market is not optimistic, coupled with the Sino-US trade war led to poor macroeconomic fundamentals, affecting hot rolling exports, so it is expected that demand will be weaker in July after entering the normal off-season in June. In order to cope with this situation, Baowu and other steel mills have issued an announcement in advance to reduce the hot rolling ex-factory price (ranging from 100 to 120 yuan / ton). [SMM Steel]

imports and exports
daily reviews

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn