Central China Province to Shut Down 40 Furnaces, Reducing Steel Output by 33,000 mt by End-2021

SHANGHAI, Sep 7 (SMM) – The Group for Air Pollution Prevention and Control in Handan City, Hebei, issued a plan on September 1 for limiting production in key industries from September 1 to October 31, which further strengthened the production restrictions.

The steel industry is required to cut the production by another 4.4% on the basis of the reduction in July and August. 20 blast furnaces under 1,000 m3 and 20 converters under 100 mt that fail to meet the performance requirements will be shut down.

By the end of September, more than 50% of the 40 facilities should be shut down in September, over 70% should be shut down before the heating season, and all the facilities should be shut down before the end of the year.

On this basis, the pig iron output will be reduced by about 16,500 mt in September, about 23,100 mt in October, and around 33,000 mt by the end of the year.

Among the 20 blast furnaces, 10 furnaces belong to 8 metallurgical/casting companies, of which the daily average output reduction by the end of the year is 14,500 mt. The average daily reduction in all other steel mills is 18,500 mt.

The production restrictions in Handan will have great impact on the supply side, boosting the market sentiments. SMM will continue to monitor the implementation of the plants.