According to the latest updates, China’s largest steel producing city of Tangshan in Hebei province will continue its production cuts in key industries post-March (i.e. from Apr to Sep), the government officially announced on Thursday 31 Jan’19, after the draft proposal was released on 18 Jan’19.
In the draft, it was proposed that all sintering machines and shaft furnaces at steelmakers who do not provide heating services in Tangshan would be required to cut down their capacities to half in the month of March. However, the finalised document removed this requirement of extensive curbs on sintering machines and shaft furnaces at steel mills in March.
The steel mills in the province are divided into four categories A, B, C, and D based on their emission levels. Now, the sintering and pelletising machines of Category A steel mills will face a smaller production cut of 20% during the non-heating season, instead of usual cuts of 50%.
Other requirements were mostly in line with the draft, which highlighted that steel plants will follow continued winter curbs on blast furnaces and capacity cuts of 50% on sintering and pelletising machines during the non-heating season.
Steel mills are further categorised into two groups based on climate patterns in the area. The two groups face the same, staggered cutback requirement during two time periods; April, August, September, and May-July.
With regards to implementation of the cuts during non-heating season, it is expected to last from 1 Apr-30 Sep’19 totalling to 183 days against proposed 214 days in the draft and 244 days in 2018.
Other heavy industries including coke, cement, casting, volatile organic compounds (VOCs)-related and glass will also undergo production cuts during April-September amid Hebei province’s vow to cut the concentration of small, breathable particles, known as PM2.5, by 5% in 2019.
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