To maintain clear skies for the Communist Party conference starting later this month in Beijing, steel mills in Hebei, China’s top-producing province, have been told to curtail production.
According to Coke Union Information and Calion, the 30% to 50% decrease will be applied to the sintering process, which is how iron ore is prepared for the blast furnace to turn it into steel.
According to the latter, the limitations would be in place from October 14 to October 22. Although Hebei, which is next to Beijing, has made strides in recent years to reduce capacity, it still contributes approximately one-fifth of the nation’s production.
On October 16, the Congress’s week-long duration will begin. Calls and emails requesting comment were not immediately returned by provincial local officials.
To maintain the purity of the air for major events, China often restricts output for severely polluting enterprises in the vicinity of the city; earlier this year, the Beijing Olympics were subject to a similar prohibition.
Also Read: Kremlin says expecting more ‘confrontation’ with West before G7
Even if they were anticipated, the timing of the most recent limitations is unfavourable for the steel industry since this is the time of year when mills typically scramble to meet peak demand during a resurgence in construction activity following the summer.
The sector has had a difficult year, with steel mills warning of a crisis scenario brought on by low demand and declining revenues.
Tangshan, the largest steel-producing city in Hebei, has seen virus-related shutdowns that have slowed the economy and worsened demand due to China’s real estate crisis.
(with inputs from agencies)
