As environmental inspections and preparations for major events intensify, China's steel industry is set to face a new round of production restrictions. According to multiple sources, key steel-producing provinces including Hebei, Jiangsu, and Shandong will implement 10-15-day output curbs starting around August 20, which are expected to temporarily reshape market supply and demand.
Policy Background
The production cuts stem from two key factors:
Environmental Targets: To meet Q3 air quality improvement goals, seasonal staggered production measures are being activated.
Major Event Preparations: Air quality control ahead of the Hangzhou Asian Games (opening September 23).
Scope of Impact
Industry insiders indicate the restrictions will primarily target:
Steel mills with environmental performance ratings of "C" or below.
Traditional blast furnace-based long-process producers.
Key regions: The "2+26" cities in the Beijing-Tianjin-Hebei zone and the Yangtze River Delta.
