SHANGHAI, Feb 26 (SMM) – Tangshan's staggered steel production plan for the non-heating season this year will provide support for the steel industry, SMM believes. 

Last week, the local government issued a proposal that requires steel mills in the region to stagger blast furnace operations based on their productivity. The pig iron output target during the period is set at 9.88 million mt. 

Sources told SMM that they see limited impact on actual steel output as steelmakers would increase the scrap usage in converters and electric furnaces to make up for the loss. This would also in turn support steel scrap and graphite electrode.

In addition, such production restriction plan during non-heating season suggested that a similar measure would continue for the heating season later in the year. This would expedite demand recovery in March from the construction sector in north China. 

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