Tangshan And Qinhuangdao Impose Production Restrictions On Steel Mills To Improve Air Quality

Published: Jun 7, 2023 14:47

Source: SMM

Save

SHANGHAI, Jun 7 (SMM) – On June 3, some steel enterprises in Tangshan received verbal environmental protection notices from regulators, requiring A-level enterprises to shut down one sintering furnace until the end of June. Non-A-level enterprises may shut down one blast furnace, and the specific number is still under negotiations. Qinhuangdao City officially issued a document, requiring four local steel mills to shut down some sintering capacity from June 3 to June 7, and to extend the cycle time of coking process to more than 30 hours. Boosted by this news, steel billet prices in the two regions rose by 110 yuan/mt.

Production restrictions in the two regions mainly target sintering machines, while blast furnaces are unaffected for the time being. A local steel mill said that it currently has sinter in stock, and the suspension of one sintering machine will not affect its production for now. If it doesn’t have enough sinter by the end of June, it will consider purchasing pellets, lumps or sinters from other regions. Another steel mill said that it has stocked up raw material inventory since April to cope with sudden production restrictions.

According to SMM, there are a total of 11 non-A-level steel mills in Tangshan. If those non-A-level steel mills are required to shut down blast furnaces in the future, roughly 30,000 mt of pig iron output will be lost per day on average.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

MMi Daily Iron Ore Report (March 24)

Dalian iron ore futures strengthened during the morning session before paring gains in the afternoon. The most-traded I2605 contract settled at 824 RMB per tonne, representing a 0.55% increase from the prior trading day.

11 hours ago

12 hours ago

Steel Exports See Modest Gains, High Freight Rates and CIF Prices Dampen Market Acceptance

SMM Flash: Overall, steel export quotations saw relatively small increases today, with most order shipment schedules concentrated in May and June. Recently, as international crude oil prices continued to rise, ocean freight rates increased sharply, and most traders' CIF quotations were too high to secure deals. Meanwhile, according to an SMM survey, taking the Vietnamese market as an example, the CIF prices of supplies from India, Russia, and other sources also rose significantly, and their advantage over local supplies was no longer prominent, resulting in low market acceptance.

12 hours ago

[SMM Hot-Rolled Arrivals] Shipments to South China Market Dropped Significantly WoW

SMM Steel, February 24 – According to SMM statistics, the estimated total shipments to mainstream markets this week reached 302,700 mt, up 50.90% WoW. By market:

12 hours ago