Tangshan extends iron ore sintering curbs indefinitely

China's largest steelmaking city of Tangshan has extended iron ore sintering restrictions beyond an earlier deadline of 6 March to curb emissions.

The city imposed a 50-70pc restriction on all sintering units from 1 March. Tangshan has not set a date for lifting the restrictions, which are unlikely to be eased during China's annual national assembly of lawmakers that started on Tuesday and will conclude on 15 March. Beijing had a smoggy start to the assembly on Tuesday, but there were blue skies today.

Mills with an A grade will continue to reduce sintering by 50pc, mills graded B will cut sintering by 60pc and mills graded C need to cut both sintering and pelletising output by 70pc. Mills with a D grade have been barred from sintering since 1 October 2018.

The restrictions have so far not dented prices of imported fines, since mills are used to varying degrees of sintering restrictions being frequently imposed since July 2018 and typically hold some stocks of sintered ores.

But prices of seaborne lump have increased this week as stocks of mainstream lump are tight at some major ports. Lump has emerged as the preferred direct-charge material, given the higher prices of imported pellet.

Tangshan has been enforcing steel output cuts at mills since 1 October 2018, which will last until 31 March. It is one of 28 cities that adopted such measures to control mill emissions during the peak heating season.

Mills with an A grade are not required to make any cuts, while mills graded B need to cut blast furnace output by 30pc and C-grade mills need to cut output by 50pc. D-grade mills are required to cut pig iron output by 70pc and completely halt sintering.