Planned output of hot-rolled coils and plates to stay at high levels in November, spot prices registered a new high in 2020

SHANGHAI, Nov 11 (SMM) — An SMM survey showed that 35 steel makers in China plan to produce a total of 10.43 million mt of hot-rolled coils and plates in November, up 0.1% from the realised output in October.

China's monthly HRC output (planned production)

Export orders of Chinese steel products fell sharply in November as demand from overseas manufacturers slid amid a second wave of COVID-19. Some of the affected overseas manufacturing orders were transferred to Chinese producers, and exports of home appliances and hardware parts increased, which boosted demand for HRC.

The output of hot-rolled coils and plates for domestic sales will expand 1.3%, or 125,900 mt from the month before to 10.09 million mt in November, while that for export will shrink 25.2%, or 115,000 mt to 342,000 mt.

HRC output rose slightly in most regions in November, but dipped in a few regions due to maintenance of blast furnace and rolling lines.

North China: Planned output of hot-rolled coils and plates=5.47 million mt, +16,900 mt/0.31%; exports=110,000 mt, -95,000 mt/46.34%

East China: Planned output of hot-rolled coils and plates=2.82 million mt, +15,000 mt/0.53%; exports=232,000 mt, -20,000 mt/7.94%

South Central China: Planned output of hot-rolled coils and plates=1.86 million mt, +20,000 mt/1.09%; No exports

West China: Planned output of hot-rolled coils and plates=283,000 mt, -41,000 mt/12.65%; No exports

Planned HRC output by region

In November, HRC output is likely to steady at high levels, while demand will remain strong. In addition, positive market sentiment and rapid declines in inventories are expected to boost spot prices further.