More small-scale Chinese mills suspend production
Pressure continues to mount as falling steel and iron prices in
China put the squeeze on many small-scale domestic producers' profit margins.
Market sources report that the number of small-scale steel mills opting to suspend their
production in Hebei province is increasing. Eight steel mills recently idled a total of twelve blast furnaces with a combined capacity of 2'000 cubic meters. Sources add that other regions also face similar situations, but this has not yet been confirmed.
The suspension of
production should help to stabilize a steel market currently trying to come to grips with excess inventory.
SteelOrbis Shanghai