SHANGHAI, Jun 12 (SMM) – Scheduled output of rebar across 31 major long steel producers in China in June is expected dip 0.81% from actual output in May, to stand at 7.21 million mt, an SMM survey showed.
Planned output of wire rod among these mills is set to dip 1.2% from the realised output in May to 3.14 million mt in June.
The declines were due to continuous environment-related cuts, at 30-50%, in east China region including Changzhou, Lianyungang, Xuzhou, and cities in Shandong province, SMM learned. However, planned output remains at high levels on profits of around 900 yuan/mt as of Monday June 11.
The amount of rebar output for domestic sales is planned at 7.02 million mt in June, down 0.89% month on month as exports are scheduled to increase 2.2% to 191,000 mt.
In east China, the surveyed mills planned to produce 3.14 million mt of rebar this month, 5.8% lower than May’s actual output. Wire rod production will also shrink 4% to 1.52 million mt.
Shagang plans to put one of its lines in maintenance from June 20-29, which will affect its output of rebar with a diametre of 20-25mm by 40,000 mt. Another steel mill in Jiangsu province cut rebar production by 30% from May 30 to June 12 due to the Shanghai Cooperation Organisation (SCO) summit in Qingdao.
Major steel mills in north China planned to produce 1.2 million mt of rebar in June, up 4.1% from the actual output last month. Their scheduled output of wire rod will grow 0.55% from May, to 733,000 mt.
A blast furnace resuming operation after overhaul at Chengde Iron and Steel, and operating rate rising at Handan Steel accounted for the increases.
In north-east China, the surveyed mills reported a 0.38% lower planned output at 781,000 mt in June, and a 1.6% lower wire rod production, at 181,000 mt.
An estimated 3,500 mt/day of rebar output will be affected in a steel mill in Heilongjiang province, as it conducted maintenance to one of its 1,080m3 blast furnaces from May 16 to June 20, SMM learned.
In north-west China, planned rebar output is set to increase 2.2% to 1.09 million mt, and that of wire rod to rise 5.8% to 474,000 mt in June. This was due to an increase in the supply of molten iron in the region as Xinjiang Bayi Iron & Steel, under Baosteel group, put a blast furnace into operation at the end of May.
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