Chinese steel material market and mills status

At present, Zongheng’s daily output is about 3,500 tons of steel strips. Since Puyang strip rolling line cut off for one year and no resumption of production plan, in Handan, only Wenfeng and Zongheng produce strips now. Wenfeng’s daily output is 3000 tons, so Zongheng’s exit will affect about 53.8% of the strip production in Handan area.

In Hebei, Bazhou Qianjin Steel has begun to shut down, Tangshan steel mill’s switch from coal to natural gas is still in progress, with exit of Zongheng, Hebei and the surrounding area of steel supply has been tight. On August 24, at the conference of North China Steel Strip, price of steel strip in September has been raised 60USD/T. Yesterday, Thaishan steel also jacked up their hot rolled steel strips’ price 69USD/T, cold rolled steel strips’ price 60USD/T and coils prices 60USD/T.