Chinese stainless steel market participants start holiday earlier amid Covid-19 outbreak
An unexpected outbreak of Covid-19 in China and weak demand for stainless steel have led market participants to begin their Chinese New Year break some one or two weeks earlier than the official January 31-February 6 public holiday.
In the past month, Covid-19 infections had been reported in Shaanxi province’s Xi’an city, Tianjin city, Henan province and Guangdong province’s Shenzhen city.
Restrictions on mobility have been imposed in these regions, resulting in strict measures controlling the entry and exit of people.
Workers and truck drivers in downstream industries are afraid that they would be required to undergo quarantines of 14 or 21 days after returning to their home towns if cases emerge in other regions. As such, they are starting to their holiday from as early as this week.
“Business owners are approving these earlier holiday requests to avoid the risk of infections emerging in their companies,” an industry analyst said.
This has led to a sudden plunge in demand for stainless steel, sources said.