“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.