After a suspension of production operations lasting 20 days, steel mills in the area of Wuan in the northern Chinese province of Hebei resumed production on September 27. However, the local government is still restricting electricity supply to locals mills by 30-50 percent and this policy is going to continue until the end of this year. Representatives of the steel mills have stated that the restriction will influence the outputs of the mills. Market analysts, on the other hand, say there is demand coming from the construction sector and so steel prices will not be influenced by the resumption of production and prices may even trend upward a little.
Meanwhile, in the area of Tangshan in Hebei 95 percent of mills are reported to have resumed production.