SHANGHAI, Apr 8 (SMM)—Production restriction in Tangshan was very tight in March and has been of great concern for the market.
SMM surveyed 26 steel plants in Tangshan, with a total number of 127 blast furnaces, and estimated that Tangshan's environmental protection policy affected 1.74 million mt of pig iron production in March, a decrease of about 17% from 10.07 million mt in February. As a result, demand for iron ore fell 2.96 million mt in March, forcing traders in Tangshan to sell iron ore concentrates to steel plants in Shandong or south China.
Currently, environmental protection inspections in Tangshan remain strict. At the end of March, Tangshan Zongheng Group Fengnan Steel was downgraded from B- to D, while Tangshan Ruifeng Steel, Tianzhu Iron and Steel, and Donghai Special Steel were downgraded from C to D. Companies will be subject to downgrading and greater production restrictions if they still fail to meet environmental protection standards.
Source: SMM
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