Don’t hold your breath — 2+42 Chinese steel-producing cities

On July 20, Tangshan, the steelmaking hub in northern China’s Hebei province, turned up the heat on pollutant industries by imposing a 43-day output cut on local blast furnaces. In parallel, Chinese authorities are removing a further 30 million mt/year of crude steel capacity. When compared with the winter heating season of November 2017 to March 2018, the iteration proposed for 2018 is set to affect a greater land-area. China imposed production cuts on blast furnaces and sinter plants across “2+26” steel-producing cities in 2017. A total of 51.8 million mt/year of pig iron capacity was reduced during that period, according to S&P Global Platts calculations. This year’s program is expected to effect “2+42” cities. 2018/2019 winter cut: what to expect While China has not officially announced details of the 2018-2019 winter heating season cuts, the state council released its “three-year blue skies” plan on July 3. Under this decree, areas for winter air pollution controls will be expanded from Beijing-Tianjin-Hebei to the Fen-Wei plain and the Yangtze River delta. Platts calculates that an extra 40 million mt/year of pig iron capacity would be subject to the 120 days winter output cuts in 2018-2019, assuming the same utilization rate of… continue reading

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