Effect of power restrictions is temporary
Post Date: 12 May 2011 Viewed: 476
The power rationing measures imposed by the governments of some regions have so far had limited impact on the domestic steel market as a whole since most steel mills in Hebei, China’s largest steel-producing province, are operating at normal capacity. What’s more, larger steel mills in China actually have their own generating facilities. The 19 principal steelmakers can generate approximately 50 percent of the electricity needed to power their plants. As a result, business activity won’t be affected by the regulations unless a compulsory policy to restrict power supplies is taken place as did last September. Pingxiang Steel, Jinan Steel, Laiwu Steel, Liuzhou Steel, Xiangtan Steel and Yufeng have arranged partial shutdowns for May operations ahead of summer peak demand for electricity.