Tangshan releases cutbacks on key industries for Q2, Q3

SMM Insight 06:45:42PM Jan 31, 2019 Source:SMM

SHANGHAI, Jan 31 (SMM) – China's largest steel producing city of Tangshan disclosed its staggered production schedule for key industries during the second and third quarters, on Thursday January 31, after the government released a draft for comment on January 18. 

Compared to the draft, the finalised document removed the requirement of extensive curbs on sintering machines and shaft furnaces at steel mills in March. 

Sintering and pelletising machines of Category A steel mills will face a smaller production cut of 20% during the non-heating season, instead of usual cuts of 50%. 

Other requirements were mostly in line with the draft, which highlighted that steel plants will follow continued winter curbs on blast furnaces and capacity cuts of 50% on sintering and pelletising machines during the non-heating season. 

Steel mills are categorised into two groups based on climate patterns in the area. The two groups face the same, staggered cutback requirement during two time periods; April, August, September, and May-July. 

Implementation of cuts for the 2019 non-heating season will last from April 1 to September 30, totalling 183 days. This compared to 214 days in the draft and 244 days in 2018. 

Other heavy industries including coke, cement, casting, volatile organic compounds (VOCs)-related and glass will also undergo production cuts during April-September.

Tangshan releases cutbacks on key industries for Q2, Q3

SMM Insight 06:45:42PM Jan 31, 2019 Source:SMM

SHANGHAI, Jan 31 (SMM) – China's largest steel producing city of Tangshan disclosed its staggered production schedule for key industries during the second and third quarters, on Thursday January 31, after the government released a draft for comment on January 18. 

Compared to the draft, the finalised document removed the requirement of extensive curbs on sintering machines and shaft furnaces at steel mills in March. 

Sintering and pelletising machines of Category A steel mills will face a smaller production cut of 20% during the non-heating season, instead of usual cuts of 50%. 

Other requirements were mostly in line with the draft, which highlighted that steel plants will follow continued winter curbs on blast furnaces and capacity cuts of 50% on sintering and pelletising machines during the non-heating season. 

Steel mills are categorised into two groups based on climate patterns in the area. The two groups face the same, staggered cutback requirement during two time periods; April, August, September, and May-July. 

Implementation of cuts for the 2019 non-heating season will last from April 1 to September 30, totalling 183 days. This compared to 214 days in the draft and 244 days in 2018. 

Other heavy industries including coke, cement, casting, volatile organic compounds (VOCs)-related and glass will also undergo production cuts during April-September.