Posted on 23 Jul 2015
China's steel prices to move up amid tougher pollution control
It is reported that China’s government is now getting tougher on air
pollution control implementing new tough new pollution standards for the
steel mills to comply with in the area of Tanshan, Hebei province, the
biggest steel production area in China that has 29 steel production
mills in this area.
The new pollution policy will increase the cost of energy to these steel
mills if they cannot meet tough new pollution standards over the next
three months.
What it means is that the steel prices may have good chance to hike as
the cost will be increased to these steel mills. As a result, billet
prices in Tangshan have risen by as much as US$10/ton during the past
several days and it is expected the steel prices shall keep moving up in
the near future.
If these steel mills are to comply with the new rules, it means the 29
steel enterprises will have to upgrade a total of 104 blast furnaces,
182 converters and 22 sintering plants by the end of October.
It again will make the matters worse as the steel prices will keep going
up as there will be tremendous investment to upgrade these pollution
equipment.
