Many production lines are reportedly shut down until at least October 7, while others are reportedly suspended for periods of peak electricity consumption.
According to the experts quoted by the Chinese edition of Sxcoal, all this will lead to a reduction of around 3 million tons in steel product production, the production of rolled products for construction purposes, thick plates and special steels will decrease the most. Some companies put their concrete plants on hold to focus on higher value products.
These cuts will not have a significant impact on the market so far, as products will be shipped from the warehouse to customers. However, if the energy supply situation does not improve in October, there may be interruptions in the rolled product supply.
Jiangsu Province ranks second in China in terms of steel production. According to the National Bureau of Statistics, 83.45 million tons were produced there in the first eight months of 2021, 5.7% more than a year ago. This represents 11.4% of the national total. In August, 9.72 million tons of steel were melted in Jiangsu, which is 8.6% less than in the same month of 2020.
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