Production and Inventory of Henan Steel Plant

Mysteel survey data shows that of the 10 construction steel sample steel mills in Henan region, 5 steel mills have undergone maintenance and production reduction this week, and 5 steel mills have completely stopped production. Judging from the production data, the total daily output of construction steel from the 10 sample steel mills in Henan is currently 15,900 tons, a decrease of 20,400 tons from last week. Among them, the daily output of thread is 8,500 tons, the daily output of wire coil is 7,400 tons, the daily output of building materials affected by overhaul / restriction is 44,600 tons, and the capacity utilization rate is only 26%, which is at an historically low level.

From the perspective of steel plant inventory, the total sample inventory of the 10 sample steel mills in Henan was 712,000 tons, an increase of 14,000 tons from last week. At present, the construction steel stocks of most steel-producing plants in the province have exceeded the capacity of the warehouse in the plant. Although logistics and transportation in Henan have resumed one after another this week, steel mills have started to ship to the market, but the current shipments are still small, so in the short term, steel mills are still under pressure to continue to accumulate storage.

On the whole, at present, logistics and transportation and downstream companies in Henan are slow to resume work, resulting in the continued obstruction of the circulation and digestion of construction steel resources. Therefore, short-term steel mills still face high inventory pressures, which in turn affects steel mill production. After entering March, as downstream demand and auto logistics are expected to accelerate recovery, it is expected that Henan steel mills' shipments will increase significantly in March, and steel mill inventory pressure will gradually shift to the market.

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