Steel Products
China Cracks Down on Winter Pollution
Written by Tim Triplett
November 1, 2017
China is cracking down on air pollution, which worsens during the winter heating season. Chinese steel producers are feeling the pressure from the government to scale back production in the next few months.
Reuters reports that growth in China’s steel industry fell to a six-month low in October as a government crackdown on winter air pollution sent raw materials prices and new orders downward.
{load position reserved_message}
China plans to reduce crude steel production by 33 million metric tons over the winter. Cuts of 30-50 percent in utilization rates at some Chinese steel plants have already begun. While the main driver is the environment, the Chinese steel industry will also improve its cost basis by removing less efficient producers from its steelmaking capacity, reports S&P Global Market Intelligence.
The Chinese central government has committed to reducing its steel capacity by 140 million metric tons by 2021. It claimed 65 million tons in 2016 and has mothballed 42 million tons of a 50-million-ton target so far in 2017, Platts reports, not counting the closure of many illegal and high-polluting induction furnaces.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
Rig counts trend lower in US and Canada
Oil and gas drilling activity eased in both the US and Canada this week, according to Baker Hughes. US rig counts remain near multi-year lows, and Canadian activity continues its seasonal slowdown.
Wittbecker on Aluminum: When do the tariffs reach Main Street?
Containers sailing from China in April are down 15%-20% and Hapag Lloyd says their future bookings transpacific are down 30%.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
US, offshore CRC prices edge lower
US cold-rolled (CR) coil prices edged lower again this week, slipping four weeks in a row now. Most offshore markets mirrored the move, ticking down marginally as well.
ISM: Manufacturing growth down again in April
Activity had trended up for most of Q1