Steel prices today fell to 5,478 yuan / ton on the Shanghai Exchange. China’s steel production cuts reached a rapid pace in September and are expected to widen further in the coming weeks.
Steel prices today fell sharply
Steel price today delivered in January 2022 on the Shanghai Exchange fell 126 yuan to 5,478 yuan/ton at the time of the survey at 9:45 am (Vietnam time).
| Type name | Period | September 20 | Difference from yesterday |
| Copper price | Delivered in October 2021 | 69.270 | -940 |
| Zinc price | Delivered in October 2021 | 22.780 | +170 |
| Nickel price | Delivered in October 2021 | 143.490 | -3.780 |
| Silver price | Delivered in September 2021 | 4.871 | -178 |
| Steel price | Delivered in January 2022 | 5.478 | -126 |
China’s steel production cuts reached a rapid pace in September, sources said, and are expected to widen further in the coming weeks, S&P Global Platts reported. some metals on the Shanghai Floor (Unit: yuan/ton). Summary: Thao Vy
Iron ore chart at Shanghai exchange (Source: Shfe)
Steel production cuts will be intensified by the end of September or in October, mainly because the overall cut in mid-September is still not enough to keep the country’s 2021 crude steel output at par. with 2020.
During January-July this year, China’s crude steel output increased by 8%, or 48 million tons, compared with the level recorded in the same period last year.
More production cuts are expected in Eastern and Southern China in the near future. Currently, the provinces of Jiangsu, Zhejiang, Yunnan, Guangxi and Guangdong are still far from the target of reducing energy consumption.
In parallel with the push to cut steel production, China’s domestic hot-rolled coil sales margin increased by 41% to $165/ton on September 13 from $117/ton on January 1. 9.
Meanwhile, the S&P Global Platts IODEX 62% Fe index fell 15% to $123/ton from $144/ton recorded in the same period.
Hebei, the largest steel-producing province in China, is by far the only province to fulfill its annual steel output target, led by strict cuts implemented in the city of Tangshan since March. Therefore, the province is also on track to reduce its energy consumption target.
Similarly, steel mills in Jiangsu, Shandong and Liaoning, the second, third and fourth largest steel producing provinces in China, have been gradually cutting steel output since the beginning of September.
Photo: Pittsburgh Post-Gazette
It is expected that crude steel output in both Jiangsu and Shandong is likely to fall by more than 1 million tons in September compared with the same period last year. In Liaoning, production could drop by about 600,000 tons year-on-year.
Meanwhile, Yunnan province is at risk of exceeding its 2021 energy consumption target and has asked local steelmakers to reduce crude steel production by 30% in September. This is expected to reduce production. crude steel volume in September is about 500,000 tons.
Large mills in Guangxi province have planned to cut crude steel output from the end of September. However, electric arc furnace steel output in Guangdong and Zhejiang provinces may be reduced in September due to measures to control energy consumption.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
