China's domestic hot-rolled coil prices strengthened on Thursday April 16 after word spread that Tangshan, the country's steelmaking hub in the northern region, is set to cut steel output.
Domestic
Eastern China (Shanghai): 3,330-3,340 yuan ($471-473) per tonne, up 10 yuan per tonne
Northern China (Tangshan): 3,260 yuan per tonne, up 40 yuan per tonne
Trading picked up across the country during the day after word spread in the market that local authorities in Tangshan would order steel mills to implement production cuts.
Mills located within 25km of the city center are said to be required to halve their blast furnace operating rates, while those further than that must lower their rates by 20-30%.
A source in Shanghai said there had not been any official confirmation of these measures yet, though many market participants are expecting them...