SHANGHAI, May 31 (SMM) – Power supply to 66 companies that produce with induction furnaces in Dainan town of Jiangsu province resumed earlier this week after companies met environmental standards.

This was according to a notice issued by the administrative committee of economic development zone in Xinghua city, where the town is located.

Among the 66 companies, six produce crude stainless steel, SMM learned. Others include foundry plants, special steel producers, downstream steel product producers and materials plants.

SMM estimated that less than 5% of Dainan's crude steel output will be resumed, suggesting that the majority of the area's induction furnaces still face rectification. 

Last week, the government of Dainan announced a shutdown of all induction furnaces across the region from May 24 in an effort to crack down ditiao steel. Ditiao steel is sub-quality rebar produced from induction furnaces.

Induction furnaces across Dainan produced about 100,000 mt of crude stainless steel every month, accounting for 5% of overall output in China.

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