Tangshan, the major Chinese steelmaking hub in Hebei Province, has again indicated that it will implement production cuts, market sources have told SteelOrbis. In particular, sintering plants will cut production by 30-40 percent, while pellet plants will reduce production by 40 percent. It is reported that the restrictions will last from September 15 until September 30, but this is based on market information, while no official confirmation has been issued so far.
Based on the data issued by China’s National Bureau of Statistics, in the January-August period this year China’s output of crude steel totaled 671.81 million mt, decreasing by 2.8 percent year on year, while its finished steel output totaled 982.17 million mt, increasing by 5.5 percent year on year.
Chinese finished steel output this year is likely to reach 1.47 billion mt, up 5.3 percent year on year. For now, the declines on year-on-year basis for crude steel production are weaker than expected, indicating a greater risk of oversupply, while production reduction is one of the only ways for the steel industry to overcome its difficulties.