Influenced by State macro-economic control, including real estate, etc and substantial increase in production costs and other factors, domestic steel demand remains in the doldrums, and price decline further., The market is unlikely to bound from the current market situation. Some steel mills already reduced or stopped production. Details are as follows:
1, TISCO plans to reduce production by 30,000 tons in July.
2. JISCO will start maintenance on the steel-making equipment around July 12th, which will last for 12-15 days, so stainless steel production will reduce 50%.
3, Baoshan Steel will cut production in July, but the specific rate is not clear.
4, Southwest Stainless Steel Company decided to upgrade equipment and adjust new equipment without production from July 1st to July 25th and resume production on July 26, because of current pressure on production costs and upside down market,
5, Lianzhong Stainless Steel Co. will still cut production in July, basically the same with June, when the production decrease more than 30,000 tons.
According to industry participants, the steel market is running weak, so steel mills cut production to keep prices firm. However, the fact that steel mills cut production will definitely affect ferrochrome market demand, and impact the price. Post-market would be more difficult to run.
|
