There were no official reports on control measures
Independent rolled producers in Tangshan, a key steelmaking center in northern China, have been implementing production curb requirements since October 22. SteelOrbis informs about it with the reference to sources.
Although there were no official announcements of control measures, the market expects a temporary reduction in the production of steel products. It will also be supported by a reduction in iron and steel supplies amid repairs that some mills announced earlier.
However, the recent news of restrictions in Tangshan did not support steel prices in China due to insufficient demand. The market has not reacted to even some decline in rebar inventories as sentiment still remains negative.
As GMK Center reported earlier, China is in September 2023 reduced production of steel by 5% compared to the previous month – to 82.11 million tons. Compared to September 2022, steel production in the country fell by 5.6%. The average daily output of steel during the month was 2.74 million tons, compared with 2.79 million tons in August 2023 and 2.9 million tons in September 2022. This is the lowest figure since last December.
Also, Chinese steel companies in January-September 2023 increased exports of steel products by 31.8% compared to the same period in 2022 – up to 66.82 million tons. In September 2023, China exported 8.06 million tons of steel, which is 2.6% less than in August. In January-September 2023, the import of steel into the country amounted to 5.7 million tons, which is 31.7% less than in the same period of 2022.