More Chinese steelmakers are planning to reduce their crude steel output in the remainder of the year, according to market resources.
The crude steel production restrictions are anticipated to be implemented at more mills, not only in Hebei-the key steelmaking hub in China, but also in Jiangsu and other provinces, which will affect market players’ sentiments as regards the future prospect for the steel and iron ore market.
For instance, mills in Jiangsu province have been heard to be required to cut utilization rates by 20-30 percent compared to the first six months this year. At the same time, in Shandong province, steelmakers have been heard to cut their steel output by around 10-15 percent since September from the level recorded in the first six months this year. Most large steel mills have been asked to keep their total steel output in 2023 not higher than 2022.
In the January-June period this year, the increases of crude steel output in Hebei, Jiangsu and Shandong provinces have been listed as the top three, with the growth of 4.99 million mt, 1.44 million mt and 1.31 million mt, respectively, signaling that they may face heavier pressures in controlling output in the July-December period.