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China's Handan puts curbs on steel, coking industries

02 Apr 2018 10:00 (+01:00 GMT)
China's Handan puts curbs on steel, coking industries

Singapore, 2 April (Argus) — Authorities in Handan, one of China's largest steel-producing cities, have imposed a 25pc reduction in steel and coke output in April-November to reduce emissions.

Handan is the second-largest steelmaking city in north China's Hebei province, the country's steel-producing hub.

Tangshan, China's largest steel-producing city that is also in Hebei province, has already imposed a 10-15pc reduction in steel output for April-November.

China lifted 50pc curbs on winter pig iron output in 28 cities, including Handan and Tangshan, on 15 March. But the prospect of a rise in pollution in the off-peak spring and summer months has prompted local authorities to maintain some of the curbs on steelmaking. China's peak emissions season runs from November-March, when excess coal is burnt to heat homes and offices.

Provinces including Anhui and Jiangxi have put curbs on steelmaking in the off-peak months, the China Steel Logistics Professionals Committee (CSLPC) said, without giving details.

China's environment ministry has also suspended production at six steel plants in Hebei province that were operating unauthorised capacity. It has also imposed a 50pc curb on steel output at 112 companies in the province that have pending environmental control work. These mills have been given three months to complete the necessary work.

The environmental restrictions could support steel and iron ore markets as construction steel demand picks up in the spring and summer.