Maintenance season begins in China as supply pressure mounts

More and more steelmakers in north China are putting their production lines on maintenance as the pressure of securing orders intensify in the face of an oversupplied market.

“The lack of orders is one main reason that maintenance stoppages among steel producers have risen. It’s hard for mills to secure orders for May-delivery products, let alone those for June,” a Beijing-based steel trader said. Two other trading sources concurred. Major mills such as Hebei-based Tangshan Iron & Steel, Handan Iron & Steel, Hebei Iron & Steel, Anshan Iron & Steel and Shougang Group have either started performing maintenance on their equipment, or will do so in the near future, according to market sources. For example, Tangshan Iron & Steel on Thursday April 20 started overhauling one of its HRC production lines. The process will last 14 days, and will take 100,000 tonnes of output off the market. The...

Published

Gladdy Chu

Jessica Zong

April 20, 2017

12:02 GMT

Shanghai