New Tangshan production cut to support China steel prices - sources

Northern China’s steel hub of Tangshan will cut 1.6 million tonnes of hot metal production at 20 steel mills in March to improve air quality, market sources in the country told Fastmarkets on Monday March 9.

This round of production cuts will affect around 56 blast furnaces in the city, according to Fastmarkets’ estimation, which will ease the pressure of high inventories at steel mills and in the spot market, participants said.
“In fact, high inventories are the only negative factor for steel prices now,” a Shanghai-based trader said.
"Other market factors will only bolster steel demand growth and support prices, especially production cuts," the trader said.

"Steel demand has been weak in the past few weeks because Chinese companies are still running at low...

Published

Jessica Zong

Miranda Song

March 09, 2020

10:05 GMT

Shanghai