Chinese steel production powers ahead despite curbs in industry’s heartland
- Plants across the country are close to peak capacity and despite a shutdown in Tangshan city to curb pollution
- High demand underscores difficulty in curbing emissions while keeping the economy on track
Steel production in China has continued to charge forward despite curbs on production in Tangshan, the country’s largest producer.
The increase underlines the dilemma the Chinese authorities face in balancing the need to keep the economy on track as it recovers from the impact of Covid-19 with its commitment to become carbon neutral by 2060.
The blast furnace capacity utilisation rate of 247 Chinese steel mills remained strong at close to 87 per cent after a small rise of 0.02 percentage points over the past week, according to the latest survey by Chinese metals market analyst MySteel Global on Friday shows.
Analysts consider this a high use rate, compared with the peak of between 92 to 95 per cent.
In contrast, the rate in Tangshan, which is home to about 14 per cent of the country’s total steel production, was close to 58 per cent – a 20-month low.