Steel prices may pick up as more mills arrange for overhauls
According to a survey done by MySteel, 28 production lines of 25 domestic construction steel enterprises are arranging for overhauls, 10 production lines of 10 domestic medium plate enterprises are doing maintenance, 10 production lines of 10 domestic HRC enterprises are starting overhauls, and 14 enterprises are preparing for overhauls on their blast furnaces.
This is despite reports of steel mills curbing production after the price drops within these months.
The reason behind this? Simple.
In the face of the grim steel market, steel mills do not want to lose their market shares and clients. On the other hand, steelmakers are reluctant to halt blast furnaces due to factors like tax payments, employment, loans and support from the local government. Latest statistics revealed that China produced up to 2.007mln tonnes of crude steel on a daily basis in June, the second highest level on record.
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