China's crude steel output was hit in March as production at mills was crimped by COVID-19 outbreaks and environmental restrictions. National Bureau of Statistics latest data shows that Chineses steel mills produced 88.3 million tonnes of crude steel in March 2022, down from 94.02 million tonnes in March 2021 but up from January-February 2022. In the first quarter, China produced 243.38 million tonnes of steel, down 10.5% from 271.04 million tonnes in January-March 2021 Production curbs at northern steel mills that aimed to cut pollution and improve air quality during the winter heating season and Beijing Olympics were planned to end in mid-March, after being implemented for around half a year. However, the recent COVID outbreaks in the country have put a dent in both steel production and consumption. One of the biggest restraints on production is that the COVID-related restrictions hinder steel mills from replenishing raw materials. China's steel hub Tangshan city issued a temporary lockdown in late March after detecting several locally transmitted cases, forcing plants to cut production due to the disruption. Furthermore, a lockdown in Shanghai following the worst COVID wave since the initial Wuhan outbreak of coronavirus also hampered downstream steel consumption, which typically peaks during the March-May period. Shanghai, a city of 27 million people, has been under strict lockdown for more than a month and people have un out of food, water & other essential supplies, including medicins. The situation is detoriating with every pasing day and a resident said that lock down is liely to contiune this month as tally of new cases rebounded to more than 25,000.
China's crude steel output was hit in March as production at mills was crimped by COVID-19 outbreaks and environmental restrictions. National Bureau of Statistics latest data shows that Chineses steel mills produced 88.3 million tonnes of crude steel in March 2022, down from 94.02 million tonnes in March 2021 but up from January-February 2022. In the first quarter, China produced 243.38 million tonnes of steel, down 10.5% from 271.04 million tonnes in January-March 2021 Production curbs at northern steel mills that aimed to cut pollution and improve air quality during the winter heating season and Beijing Olympics were planned to end in mid-March, after being implemented for around half a year. However, the recent COVID outbreaks in the country have put a dent in both steel production and consumption. One of the biggest restraints on production is that the COVID-related restrictions hinder steel mills from replenishing raw materials. China's steel hub Tangshan city issued a temporary lockdown in late March after detecting several locally transmitted cases, forcing plants to cut production due to the disruption. Furthermore, a lockdown in Shanghai following the worst COVID wave since the initial Wuhan outbreak of coronavirus also hampered downstream steel consumption, which typically peaks during the March-May period. Shanghai, a city of 27 million people, has been under strict lockdown for more than a month and people have un out of food, water & other essential supplies, including medicins. The situation is detoriating with every pasing day and a resident said that lock down is liely to contiune this month as tally of new cases rebounded to more than 25,000.
