In May this year, China’s hot rolled coil (HRC) production amounted to 14.21 million mt, up 6.1 percent year on year, which was 2.1 percentage points faster than the increase rate in April. Average local HRC prices in China had increased by 9.04 percent as of May 29 as compared to April 30, according to the SteelOrbis data, despite higher production as consumption improved visibly.
Cold rolled coil (CRC) output in China in May reached 3.05 million mt, down by 0.8 percent year on year, shifting from a year-on-year rise of 8.5 percent in April.
In the January-May period of this year, China’s HRC production rose by 7.9 percent year on year to 65.856 million mt, while its CRC production fell by 5.0 percent year on year to 13.609 million mt.
Demand for HRC in the local market was good in May. According to the data issued by the China Iron and Steel Association (CISA), as of May 31 HRC inventories in China amounted to 1.9 million mt, down 5.1 percent compared to May 20.