Shaanxi, Shanxi, Gansu, Sichuan steelmakers to cut production to support the market

Published: Aug 12, 2019 13:30

Save

In Shanxi, Liheng will halve production by suspending two blast furnaces

SHANGHAI, Aug 12 (SMM) – Steelmakers across central China’s Shaanxi, Shanxi, Gansu and Sichuan provinces agreed at the meeting over the weekend to curtail production to prop up steel prices, SMM learned.

In Shanxi, Liheng will halve production by suspending two blast furnaces, which translates to 6,000 mt of daily output being impacted, while Jianbang will cut one third of its production, as much as 3,000 mt per day, by suspending a 550m³ blast furnace.

Shanxi Jianlong will use 30% less of steel scrap to reduce production by a daily volume of 3,000 mt, while Hongda will slash daily output by 1,500 mt.

Operation update Steel

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

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

Related News

3 hours ago

ADC12 Consolidates on a Strong Note as Costs Rise and Orders See Marginal Improvement [Aluminum Scrap and Secondary Aluminum Weekly Review]

[Aluminum Scrap and Secondary Aluminum Weekly Review: ADC12 Consolidates on a Strong Note amid Rising Costs and Marginal Order Improvement] In terms of price spreads, on September 10, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,436 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,415 yuan/mt, both widening slightly again WoW. On the supply side, the tight raw material supply pattern remained unchanged, and the scarcity of compliant, invoiced aluminum scrap continued to rise, constraining scrap utilization enterprises' operations and procurement. Against this backdrop, some aluminum scrap yards...

3 hours ago

4 hours ago

[SMM Steel] India Domestic Sponge Iron Jumps on Tight Supply

[India Domestic] The domestic steel market stayed firm with prices rising across semis and finished steel. Sponge iron led the gains as higher coal costs and tight material supply continue to push prices up. Raipur billet increased by 5.24USD/tonne (500INR/tonne) to 450.78USD/tonne (43,000INR/tonne) EXW Raipur. PDRI sponge iron up by 6.29USD/tonne (600INR/tonne) to 308.27USD/tonne (29,400INR/tonne) EXW Raipur. Bellary PDRI sponge iron rose by 8.38USD/tonne (800INR/tonne) to 317.68USD/tonne (30,300INR/tonne) EXW Bellary. In Bellary, sellers are quoting sponge iron at 316.63-317.66USD/tonne (30,200-30,300INR/tonne), while buyers are bidding lower at 315.56-316.63USD/tonne (30,100-30,200INR/tonne). Despite this gap, very little actual business has been concluded so far. Market participants noted, the wider coal dynamics are shaping this trend. As coal prices rose, imported coal briefly became cost-competitive compared to domestic coal, so buyers are moving back to domestic coal. This shift has left material availability tight. Mumbai Rebar up by 2.90USD/tonne (200INR/tonne) to 530.56USD/tonne (50,600INR/tonne) EXW Mumbai. Ingot up by 1.05USD/tonne (100INR/tonne) to 488.52USD/tonne (46,600INR/tonne) EXW Mandi.

4 hours ago

Copper prices keep hitting new highs, downstream wait-and-see sentiment grows [SMM Secondary Copper Daily Review]

4 hours ago