Tangshan, China’s stop steel producing city in North China’s Hebei province were directed to suspend its steel production from May 18-31 to improve air pollution, according to Chinese media reports.
Due to the production cut some of the mills and traders have raised their offer prices while some have halted trade activities as they expect an uptick in the steel prices in the near term.
The Chinese government had also approved and issued Tangshan city air quality enhancement guarantee scheme in May and introduced slew of measures to minimise pollution.
Tangshan Wenfeng Special Steel shut down its production by 20pc and Shougang Jingtang Iron and Steel has curtailed its operation to meet the emission standards.
Major steel rollers in Tangshan are located in Fengrun district and the government has also instructed integrated mills in the region like Hebei Tianzhu and steel group to halt production facilities.