Power supply restrictions have been stepped up in some areas in Tangshan in the Chinese province of Hebei, affecting steel production in the areas in question.
In order to meet power supply restriction targets for steel mills in October, in the evening of October 26, all mills in Fengrun, where many small-sized mills in Tangshan are located, were subjected to mandatory power cuts, which will continue until November 1. As a results of such cuts, 52 blast furnaces in Tangshan, i.e., 34.7 percent of all BFs in Tangshan, have been shut down for maintenance work.
According to local market players, these power cuts will cause a sharp decline in inventories of strip, wire rod, rebar and other steel products in the coming two months.