SHANGHAI, Apr 12 (SMM) – SMM believes that environmental supervision across steel mills that began in Xuzhou city will extend to the rest of Jiangsu province. Most steel mills in Xuzhou suspended production for rectification after provincial environmental inspections, SMM learned on April 11. These mills included Xuzhou Dongya Steel and Xuzhou Huahong Special Steel.
Director of Jiangsu's Provincial Second National Pollution Sources General Survey Office, Kong Fusheng, said that the second national survey of pollution sources in the province had begun. The survey will target industrial pollution sources, centralised pollution control facilities, mobile sources, and other facilities that generate and discharge pollutants.
Some mills, such as Xuzhou Dongnan, have not suspended production. SMM also learned that Xuzhou Dongnan Steel faces suspension for inspections.
A steel mill issued official notice on April 11 that it will stop purchases of raw materials from April 11, until further notice. About 90,000 mt of output will be affected as a rebar line at Xuzhou Huahong undergoes maintenance from April 9 to the end of April.
Given the suspensions, many steel mills including Xuzhou Steel raised offers by 100 yuan/mt as of April 11. Shipments held steady.
SMM expects the sharp decline of supplies in north Jiangsu to provide strong support to steel prices in the short term.
Steel mills will be permitted to resume production after they undergo a qualifying evaluation, SMM learned.
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