Update: Tangshan likely to further loosen steel production curbs in Sep

(Adds SMM estimates)

SHANGHAI, Aug 26 (SMM) – China’s top steelmaking hub, Tangshan in Hebei province, is considering further loosening restrictions on steelmakers next month, after an easing from July in August, according to a draft plan for smog control in September that circulated across the market on Monday August 26.

Production curbs on Tangshan steel mills will be implemented in different scales in two periods, September 1-25 and September 26 to October 4.

In the first 25 days of next month, 16 steelmakers, including grade-A Shougang Qian’an and coastal mills, are likely to be required to cut sintering and pelletising capacity by 20%.

A cut of 30% is required of sintering and pelletising machines at other mills, and 17 of which are also ordered to lower capacity of their blast furnaces and lime kilns by 30%.

Coke plants across the city are required to extend their coke production period beyond 28 or 36 hours.

The restrictions on sintering and pelletising machines and lime kilns will be ramped up to 30% or 50% between September 26 and October 4.

The proposed production curbs are estimated to impact pig iron output for September by 1.3 million mt and iron ore demand by 2.24 million mt, SMM calculations showed.

About 2.2 million mt of pig iron output and 3.48 million mt of iron ore demand were affected by production curbs in August.