SHANGHAI, Aug 17 (SMM) – Steel companies in Tangshan are likely to face production cuts of at least 50% from September 1, as the city mulls earlier winter cuts to improve its air quality ranking, according to market talk.
While there is still no official notice, some steel mills told SMM that such talk were heard in the market this week.
In June, Tangshan ranked last for air quality across 169 Chinese cities, according to latest data from the Ministry of Ecology and Environment.
All blast furnaces in Tangshan, including urban areas of Fengnan and Fengrun districts, have been running with 50% of production from last weekend. This requirement was in addition to the city's current pollution improvement effort, which required steel mills to limit operations from July 20 to August 31. The Tangshan government also raised cuts on mills in Fengnan and Guye districts to 50% earlier this week.