In China, the positive effects of various measures implemented by the government to boost domestic demand and promote economic development are gradually being felt. Some mills are resuming their production steadily and plan to reach 80-90 percent capacity in January 2009; meanwhile, others are still maintaining a wait-and-see attitude as they feel uncertain about the prospects for the market after the Chinese Spring Festival and have now become more cautious.
Anyang has been resuming its production slowly and is now up to 70 percent of its capacity. Full resumption of production by this mill is planned for after the Chinese Spring Festival, subject to the market situation.
Nanjing is currently operating at 80 percent of its capacity, while Guofang and Magang have resumed normal production. Meanwhile, Liuzhou is working at 85 percent of its HRC capacity and 60 percent of its HRP capacity.
Jinxi's production is now back to its normal level of 160,000 mt/month, due to the number of orders they have claimed in the domestic market. On the other hand, Jiuquan's output stands at 75,000 mt/month, i.e. at 40 percent of its capacity.
The long product outputs of Shagang and Pingxiang had been less influenced by the downturn as Shagang's output is of high grade and its carbon product share is very low, while Pingxiang benefits from its geographic location, with not much competition in its region.