FOCUS: Tougher new measures in China could shake ferrous markets in 2021

The never-before-seen measures meted out by China’s Tangshan municipal government could cut hundreds of thousands of tonnes per day in steel output and hit raw material demand in 2021, market sources told Fastmarkets.

Tangshan's environmental protection office said on Friday March 19 that it is looking to tighten its grip on air pollution in the city, especially after it found that not all steelmakers had abided by production restrictions in the previous round of controls.
It detailed draconian measures to be imposed on errant mills, including requiring seven steel mills to cut production by 50% from March 20 to the end of June and 30% for the rest of the year.
Another 16 steel mills are required to cut production from March 20 to December, while two "A-class" mills are required to cut production by about 30% from March 20 to April 20.
Chinese steel mills are typically categorized as A to D class based on their environmental protection performance, steelmaking facilities and technology.

The steelmaking city could see a shortfall of 106,000 tonnes per day of hot metal between March 20...

Published

Min Li

Alice Li

March 19, 2021

12:41 GMT

Shanghai