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Market Review
Price of main markets in Central and West China markets decreased on
Monday and Tuesday. Construction steel price was stable in West China
while declined by 90-200 yuan per ton in Central South China.
Specifically, construction steel price saw sharp decline in Guangzhou
and Changsha markets. Price difference of construction steel between
Guangdong and Shanghai exceeded 300 yuan per ton, therefore price was
probably to further decline. As for medium and heavy plate, price went
down by 20-90 yuan per ton except for 250 yuan per ton decrease in
Zhengzhou market. HRC price dropped by 40 yuan per ton in West China
market, declined by 160 yuan per ton in Central South China market. CRC
price decreased by 30-90 yuan per ton except for 150 yuan per ton
decline in Guangzhou market. Section steel price stabilized in West
China market while decreased by 20-70 yuan per ton in Central South
China.
From 8-13 February, 2020, construction steel ex-work price of Shenglong
Metallurgical Company decreased by 50-80 yuan per ton and of Anyang
Steel declined by 169.5 yuan per ton. Flat steel ex-work price of Anyang
Steel dropped by 169.5-226 yuan per ton.
Maintenance
Liuzhou Steel: one bar production line was in maintenance on 12, 13
February, 2020, and rebar output is reduced by 5,000 tons per day. At
present, only two wire rod production lines are in normal production.
Anyang Steel: 260 continuous casting stand (1.08 million tons production
capacity) was in maintenance on February 13, 2020 and small-sized rebar
output decreases by 3,000 tons per day. 300 continuous casting stand
(1.08 million tons production capacity of large-sized rebar) stopped
production on August 18, 2019 and has not resumed production yet. At
present, all bar production lines stopped production. One 1780mm HRC
production line (3.50 million tons production capacity) was maintained
from February 7, 2020 and resumed production on 10 February, 2020. HRC
output declined by 10,000 tons per day and around 30,000 tons in total.
One wire rod production line was maintained on 11 February, 2020 and
wire rod output is reduced by 1,000-1,400 tons per day.
Echeng Steel: One bar production line is maintained from 10 to 17,
February, 2020. Rebar output decreases by 2,500 tons per day. And one
bar production line is planned to be maintained from 17 February, 2020
for 5-6 days and rebar output is estimated to decrease by 2,500 tons per
day.
Xinjiang Kunlun Steel: Affected by 2019-nCoV, one blast furnace(1080m3),
one bar production line and one wire rod production line is maintained
from February 15, 2020 for 2 months. Hot metal output and construction
steel output decreased by 2,000 tons per day and around 120,000 tons in
total.
Trading Tips
Steel mills should reduce production in accordance with their inventory
status and market inventory and make policies to ease distributors and
agents. Traders are suggested to offer market quotation reasonably. After
the market recovery, traders whose inventory is at a high level should
focus on selling to reduce the inventory. |
