Posted on 30 Apr 2024
Production of hot-rolled coils (HRC) among the 37 Chinese flat steel producers Mysteel regularly monitors eased to 3.16 million tonnes during April 22-26, down by 75,500 tonnes or 2.34% on week, Mysteel's latest weekly production survey shows.
The hot-rolling capacity utilization rate among the 37 mills also slipped by 1.93 percentage points on week to average 80.63% last week, the survey found.
Some steel producers in East China halted hot strip mills and some upstream facilities for maintenance during the survey period, which resulted in the on-week decline in HRC output, survey respondents noted.
Besides, some steel mills in Central China sped up their delivery pace of hot coils last week, respondents added.
Consequently, total hot coil stocks at the 37 surveyed mills moved lower by 3.32% on week to 850,500 tonnes as of April 25, Mysteel's survey showed.
Meanwhile, immediate buying and some replenishment demand for hot coils before China's Labor Day holiday over May 1-5 also saw the HRC inventories at commercial warehouses in the 33 Chinese cities Mysteel checks decline last week, with the tonnage losing 1.5% on week to 3.25 million tonnes as of April 25, according to Mysteel's tracking.
But most agreements were reached at lower prices, reflecting users' cautious sentiment, respondents pointed out.
By April 26, China's spot price of Q235 4.75mm HRC under Mysteel's assessment had inched down by Yuan 12/tonne ($1.66/t) or 0.31% on week to reach Yuan 3,835/t including the VAT.
On the same day, the Shanghai Futures Exchange's most-traded HRC futures contract for October delivery closed the daytime trading session at Yuan 3,833/t, lower by Yuan 9/t or 0.23% from the April 19 settlement price.
Source:Mysteel Global
