How Latest Environmental Protection Inspections Affect Domestic Steel Mills? SMM Surveys

SHANGHAI, Feb. 17 (SMM) – China’s Ministry of Environmental Protection will launch a new round of environmental protection inspections across 18 cities from February 15 to March 15. The inspections will cover Beijing, Tianjin, Hebei (including Shijiazhuang, Langfang, Baoding, Tangshan, Handan, Xingtai, Cangzhou, Heshui), Shanxi (including Taiyuan, Linfen), Shandong (Jinan, Dezhou), and Henan (including Zhengzhou, Hebi, Jiaozuo, and Anyang). 

What's the impact on domestic steel mills from the new round of inspections? 

SMM survey finds that the latest inspections are expected not to affect production at steel mills, but production at steel downstream producers will be restricted to some extent. Many small processing plants in south China, such as pipe/tube, cold-rolling and galvanized producers, will hardly restart production. 

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With the annual NPC&CPPCC sessions nearing, Beijing, Tianjin and Hebei have already started stricter environmental protection inspections. It is usual for production restrictions around the conference, and domestic steel mills usually build up sufficient materials in advance for production needs. Moreover, large steel mills in those regions are equipped with environment-friendly facilities, SMM adds. 

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