Operations at Chinese manufacturers of flat-rolled copper products slowed in April, as backlogged orders had been fulfilled and as the COVID-19 lockdown restrictions dealt a blow to the demand that have already been weak.

Crude steel output across major mills in China averaged 2.05 million mt per day in the first 10 days of May.

While production expands, inventory pressure at steel plants continued to reduce on the back of growing consumption, and this may provide upward momentum in near-term steel prices. 

Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China fell for an eighth straight week this week, as demand remained robust. SMM data showed that HRC stocks across social warehouses and steelmakers decreased 2.31% in the week ended May 7 to 4.45 million mt. That was smaller than a 4.6% fall in the previous week due to the Labour Day holiday and improved arrivals.

Prices of construction steel rebar will likely stay rangebound in the weeks ahead, underpinned by strong demand from stepped-up operations at construction sites while supply pressure continues to mount. 

Guangxi Tianyuan New Energy Material has put its 10,000 mt/year lithium carbonate production line into operation, SMM learned.

Southwest China’s Sichuan province lowered electricity tariffs to the normal season mode on Saturday. There were barely any silicon producers in the region stepping up production, SMM research found, due to weak silicon prices and limited power supply caused by continued drought.

SMM data showed that HRC stocks across social warehouses and steelmakers decreased 4.56% in the week ended April 16 to 5.02 million mt, marking a fifth straight week of decline and larger than a 3.59% fall in the previous week.

The global widespread of COVID-19 has forced many countries to enforce stringent containment measures which result in a heavy impact on global economic activity. Over the past few months, we saw serious disruption of manpower, transportation and production in China. We are now seeing these scenarios happening around the world.

China’s production of stainless steel in March dropped 13.2% from a year ago, showed SMM data, amid the coronavirus pandemic.