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[SMM thread] profit "hit", thread production may decline slightly in July
Jul 1,2020 18:36CST
The content below was translated by Tencent automatically for reference.


According to SMM statistics, as of today, the reduction of building materials caused by the overhaul of steel mills is 156500 tons, which is 77500 tons less than that in June. But SMM still believes that the overall production of building materials is likely to decline in July.

On the one hand, thread profit shrinks, blast furnace factory production enthusiasm fades.

With the differentiation of thread and hot coil fundamentals, the profit difference of coil remains at a high position. Most steel mills report that the profit of producing hot coil per ton steel is 150 yuan higher than that of thread 100m / t. As a result, some steel mills have started the operation of changing hot metal to hot coil. According to preliminary statistics, the volume of this part is 15-180000 tons.

On the other hand, the operating rate of electric arc furnace steel mill declined under the loss.

According to SMM research, at present, most electric arc furnace steel enterprises are under double pressure from losses and factory warehouse pressure. As of this week, the operating rate has fallen by 4.24%. In the case that steel prices are difficult to improve in the short term, the operating rate will continue to decline in the later stage.

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