From Macquarie:
The capital city of China’s biggest steel province Hebei, Shijiazhuang, has ordered all local steel mill, cement producers, coking plants and other heavy industries to suspend production from 17th November until the end of this year. This is the strictest environmental related closure in Hebei in 2016, with Shijiazhuang criticised by the provincial government on lagging pollution reduction efforts so far. Shijiazhuang has three large steel mills and a few small ones there with a total capacity of 18mtpa, accounting for 2% of China national production and 9% of Hebei’s steel production. However, China’s biggest steel city Tangshan is not affected. However, we have seen evermore frequent disruptions to Tangshan output as efforts to achieve 2016 pollution control targets are amplified.
That’s one reason though, really, it’s no reason at all. There’ll be no change in total steel output.
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