Chinese stainless mills to close
Yesterday 22/05/18 the Chinese government moved to close all of the small stainless steel melt factories in north of Jiangsu province (Dainan area) from the following morning.
This is part of the governments ongoing policy to reduce smog by targeting those companies with the biggest pollution problem.
China, is the world’s largest steel producer, has ordered a host of cities to crack down on heavy industry as part of its pollution, which has become an important social issue due to concerns about damage to people’s health.
The mills will usually be given the option to re-open once they can meet the required standards. However with smaller factories this is often not financially viable.
These melt shops supply material used throughout the product range of materials including wire rod,sheet,pipe and strip. The capacity removed is expected to be in excess off 100,000 tonnes per annum.
This will inevitably leave the market short on supply and lead to higher prices with immediate effect.