SHANGHAI, Jul 10 (SMM) – Wu'an, one of China's major steelmaking cities in Hebei province, tightened production curbs on local steel mills and extended the cutback period by a month till the end of August, according to a statement released by Wu'an government on July 8, following the previous notice on June 30.
Local steelmakers of Wenfeng, Wen'an, Mingfang, and Xinjin will face an addition of 5% capacity cut, on the top of the requirements on June 30.
SMM assessed that the deepened curbs will affect sintering capacity by 5.16 million mt, pig iron capacity by 2.05 million mt, and deter demand for iron ore by 3.52 million mt. These compared with the previous assessment of 3.19 million mt, 1.23 million mt, and 2.13 million mt, respectively.
Output of rebar and wire rods will be mainly impacted as steel bar and wire rods mills account for most of the local steel producers.