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May 31, 2018

SCO summit to affect 50% steel pipe output in Liaocheng

SHANGHAI, May 30 (SMM) – Around 50% of steel pipe output will be affected in Liaocheng city of Shandong province as local steel pipe mills were required to cut emissions during May 30 to June 12, SMM learned. This is in response to the Shanghai Cooperation Organisation (SCO) Summit to be held on June 9 in Qingdao.

The city is some 470 kilometres away from Qingdao.

In Binzhou city, about 400 kilometres from Qingdao, production of colour-coated steel plate was required to be suspended for 14 days from May 29. The move is expected to affect hot-rolled coil output by 900,000 mt. The galvanising industry will also see an impact.

Colour-coated steel plate is produced from hot-rolled coil after cooling and galvanising.

SMM expects environmental restrictions on production would be expanded to the whole province or beyond in the near term as SCO approaches.

Previously, construction sites within 100 km of Qingdao were completely suspended from May 20; steel plants within 300 km of the city had been required to cut 40-50% of their blast furnace output as of May 21. The impact will last for one month.

As of Monday May 21, Jinan city has stopped steel product deliveries to Qingdao.

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