China’s plan to significantly reduce steel production in Tangshan, with some Tangshan blast furnace mills instructed to cut production capacity by as much as 40% from August 31 to September 3, has helped stabilize hot-rolled coil (HRC) prices in Asia.
Despite weak overseas demand and buyers taking a cautious approach, Chinese HRC export quotes have remained steady. The expected production cuts have also provided a level of support for domestic demand within China.
However, local steel traders are not confident that these measures will be sufficient to stimulate a new round of price increases due to the limited output cut.