SHANGHAI, Feb 19 (SMM) – The previous restrictions on raw materials shipments have been gradually removed on the back of the recovery of logistics, but this may unlikely to trigger a large-scale resumption of steel supply, as stagnated downstream demand will extend the suspension or maintenance at most steelmakers . 

A SMM survey showed that only 2 steel mills among 33 surveyed producers under maintenance carried out the overhaul due to shortage of raw materials in the first place. It is unlikely to significantly lift steel supplies even if the two steelmakers both recover production with the resumption of feedstock delivery. 

About 50-80% of the cargo transportation has returned to normal in China as of February 18, showed a SMM survey. 

Production of rebar, due to its smaller profits compared with other steel items, has been most impacted since February after inventory pressure, feedstock shortage and cash flow issues amid the coronavirus impact drove steelmakers into maintenance or output cut. 

SMM learned that more than 80% of the surveyed steel plants conducted maintenance at the expense of rebar production. 

Update of maintenance and its impact at Chinese steel mills