【Steel Industry】 Total Inventory Decline Narrows, 6 Blast Furnaces Resume Production After May Day

The China Iron and Steel Association held a quarterly information release conference, calling for enhanced self-discipline in production control to improve economic efficiency; adjusting and optimizing product structure to adapt to demand changes; shifting export patterns and strengthening international exchange and cooperation; and deepening benchmarking and tapping potential to maintain stable operation of the industry chain. Graphite electrodes for short-process electric furnace steelmaking, specifications can be referred to.

During the May Day holiday, a total of 6 blast furnaces resumed production, with a daily increase in pig iron production of 24,100 tons; and 1 blast furnace underwent maintenance, which was routine maintenance, resulting in a daily decrease in pig iron production of 3,000 tons. The average pre-tax cost of pig iron for mainstream sample steel plants in Tangshan was 2,584 yuan/ton, with an average post-tax cost of steel billets at 3,384 yuan/ton, a weekly increase of 41 yuan/ton compared to the ex-factory price of square billets of 3,450 yuan/ton on May 5th. Steel plants had an average profit of 66 yuan/ton. The output of the five major steel varieties was 8.7772 million tons, an increase of 137,400 tons compared to the previous week. The total inventory of the five major steel varieties was 19.2902 million tons, a decrease of 111,200 tons compared to the previous week. Among them, the inventory of steel plants was 5.1443 million tons, an increase of 19,700 tons compared to the previous week; and the social inventory was 14.1459 million tons, a decrease of 130,900 tons compared to the previous week.

In April, pipe billet steel plants produced 1.0016 million tons, an increase of 46,600 tons compared to the previous month and 80,000 tons compared to the same period last year. The estimated production for May is 975,800 tons, a decrease of 25,800 tons compared to the previous month. On May 1st, Shagang announced the ex-factory price for the first half of May, with no change in the price of threaded steel and spiral steel, at 3,970 yuan/ton for threaded steel and 4,010 yuan/ton for spiral steel. During the May Day holiday, the ex-factory price of square billets in Qian'an, Tangshan, was cumulatively reduced by 10 yuan/ton to 3,450 yuan/ton including taxes. Last week, the consumption of the five major steel varieties was 8.8884 million tons, a decrease of 7.2% compared to the previous week, with construction material consumption down by 9.8% and plate consumption down by 5.4%. For more reports on the production and sales of steel after the holiday, feel free to contact us.

Summary of steel price adjustments for construction steel in steel mills on April 30^th