Home » Other » Chinese Mills are reducing steel production

Chinese Mills are reducing steel production

Posted by: Yoyokuo 2021-02-14 Comments Off on Chinese Mills are reducing steel production

An unexpected surge in coal prices has led to Chinese steel mills being forced to reduce output. Chinese steel companies have this year been under constant pressure to reduce their steel production but little was done and earlier in the year, a number of mills were operating at near full capacity, however, in recent weeks a number of the furnaces have been operating at an unusually low 86%. 
Beijing are largely responsible for the reduction in steel production (no doubt to the delight of the rest of the world), this year the state has been cracking down on the level of coal production amid the global fight against pollution. Therefore, the reduction of coal capacity has forced businesses to hike their prices, and when you consider coal is an ingredient that constitutes about 20% of steelmaking production costs, you can see why it’s had such a significant impact. 
Traditionally, December is a month that Chinese mills will slowdown production to match limited demand, a month they also tend to complete the seasonal maintenance of their mills, however, due to the unusually high prices both of these activities have been brought forward. As stated, this time of the year is naturally one of the quietest for Chinese steelmakers, so if it was ever going to happen then now is arguably the best time, however, the biggest concern will be whether the hiked coal prices will be reverted come spring when demand tends to increase.

Chinese Mills are reducing steel production

Shanghai Metal Corporation is a trusted aluminum alloyaluminum foil pricestainless steel price and stainless steel manufacturer, kinds of stainless steel in china.

Guest contributors are welcome at the Alloy Wiki.It is a weekly wiki and guide on alloy information and processing technology, while also about the vast array of opportunities that are present in manufacturing. Our team of writers consists of a Machining Material Supplier / Machinist / Tool and Die Maker, a Biomedical Engineer / Product Development Engineer, a Job Development Coordinator / Adjunct Professor, and a President and CEO of a manufacturing facility.

Link to this article:Chinese Mills are reducing steel production

Reprint Statement: If there are no special instructions, all articles on this site are original. Please indicate the source for reprinting:Alloy Wiki,thanks!^^