It was reported that steel mills in China, South Korea, India, and Taiwan have all spontaneously reduced production to do maintenance. It was still uncertain if the production reduction can stabilize the prices.
Affected by the lockdown, Asian steel demands have fallen to the bottom so that the prices are declining. Even the epidemic affects demand, the steel mills are unwilling to cut prices. For this reason, steel mills in many countries have passively or spontaneously reduced production.
The Chinese government previously announced that steel production in 2021 will not exceed that in 2020, and it was estimated that steel production will be reduced by 60 million tons from July to December.
In South Korea, a large local steel mill was expected to carry out maintenance and a shutdown for 14 days in mid-October. Another steel mill will carry out two-week rolling mill maintenance in mid-October, mainly reducing the production of hot-rolled steel.
In Taiwan, a steel mill will carry out three-week maintenance of rolling equipment in September.
In India, the local JSW Steel is currently undergoing maintenance of the hot rolling mill at its Vijayanagar plant. The maintenance time is 55 days in total.
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