Tangshan City, a steel mill in Hebei Province in northern China, ordered its mills to cut production in June at the same level as in the winter heating season, which means that most production cuts in these steel mills in June will be about 39.3%. ,
However, not all of these mills will reduce productivity by this amount, as some will be subject to higher cuts from 53% to 60%.
Steel factories in the Tangshan Lubai, Kaiping, Gui, Fennan, Qian'an, Luanzhou and Luannan areas were ordered to reduce the capacity utilization of blast furnaces and converters in June to the same levels as in the middle winter season. -November to mid-March, which was about 39.3%.
Another five steel mills with better environmental performance will reduce production rates by 20% in June, compared with May.
Tangshan freed eight factories with a total capacity of 23.3 million tons per year from production cuts in June, as they are in the process of moving to rural areas.
Traders have become concerned that easing restrictions on steel production will put additional pressure on prices in June, which is the seasonally slow period for construction demand due to wet weather in some parts of China.
However, one observer in the steel market said that weaker production cuts in Tangshan in June might not have a big impact on steel supplies, as orders for production cuts in May were not strictly implemented. He said that most steel mills, especially those that produce long products, had already reached full capacity in May, so opportunities for further increases in production were limited.
However, in the long term, steel production in China has not yet reached its peak, as iron and steel production capacities are increasing again.
