NEWS CENTER

NEWS CENTER

10

2022

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10

Total domestic hot-rolled steel production in October 2022 will remain at a high level during the year

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I. Actual production and planned production of steel mills
  
Mysteel statistics: 81 domestic hot-rolled strip steel mills planned production of 8,755,400 tons in October, the actual total production of 8,159,700 tons in September, an expected increase of 595,700 tons.
  
The actual total production of hot-rolled strip steel in September was 8,159,700 tons, a decrease of 44,300 tons, a decrease of 0.54%; compared with last year, an increase of 565,500 tons, an increase of 7.45%. The average daily output was 27.20 thousand tons, an increase of 0.74 thousand tons, or 2.80%.
  
In September, the traditional peak season, market demand has been released, social inventory maintained at a low level of about 550,000-600,000 tons, hot-rolled steel prices narrowly oscillating operation. With price stability, steel mill profits basically maintained at the edge of the cost line, and 2022 has been 2/3, to ensure that the annual production tasks, strip steel production to maintain a high level during the year.

 

Total domestic hot-rolled steel production in October 2022 will remain at a high level during the year

 

The total planned production of hot-rolled steel strip in October was 8,755,400 tons, an increase of 244,600 tons or 2.87% over the planned production in September; the actual production in October last year increased by 763,300 tons year-on-year; the average daily planned production was 282,400 tons, a decrease of 0.12 million tons or 0.42% over the same period.
  
The planned increase in October is mainly due to 1 more day in October than in September, coupled with the end of the annual maintenance of individual steel mills and product deployment, so production increased slightly. In the northeast and southwest, the planned small reduction is mainly due to individual mills according to the profit situation, the deployment of production of other varieties. Despite the winter production restrictions in the north may exist, but because of the overall low production during the year coupled with the continued environmental transformation of steel mills in recent years, the strength or less stringent than in previous years.

 

Total domestic hot-rolled steel production in October 2022 will remain at a high level during the year

 

II. In-plant inventory situation
  
In-mill inventory of hot-rolled steel strip in September was 369,600 tons, an increase of 41,400 tons, or 11.2% from the previous month. In addition to North China and Southwest China, the rest of the regional in-plant inventory continued to decline. The increase in North China was mainly concentrated in the billet mills, whose downstream profits are meager and therefore the stock taking speed is slow, resulting in inventory backlog. In Southwest China, the increase in inventory was mainly due to the resumption of steel production and the return to normal level.

 

Total domestic hot-rolled steel production in October 2022 will remain at a high level during the year

 

Summary
  
In September, hot-rolled steel prices narrowly oscillating tend to strengthen, in the case of acceptable costs, steel production enthusiasm is high, the supply to maintain the high point of the year; and the entire industry chain profits are small, so cautious replenishment, the overall downstream inventory levels are low, in the rush phase, demand will still be released one after another, October overall supply and demand or maintain a tight balance. Steel mills are currently higher than the level of the same period last year, so the steel mills sales pressure, or a certain restraint on price increases.