Posted on 14 Oct 2022
Major steelmakers in Anshan, Northeast China's Liaoning province, have been little impacted by the recent rise in COVID infections and are operating as per normal, while stalled trading of construction steel is seen as building activities among local end-users came to a halt, Mysteel learned.
Over October 7-12, Anshan reported a total of 14 locally-transmitted confirmed cases and 73 local asymptomatic cases, according to the data released by Health Commission of Liaoning province.
Consequently, Anshan's city government has introduced citywide lockdowns since October 12, according to a notice released by the government on Tuesday.
Nevertheless, the transportation of steelmaking raw materials among mills in Anshan has remained unimpeded, and mills are also keeping their normal operations, Mysteel observed.
Meanwhile, some other mills in Anshan confirmed to Mysteel that they may see their in-plant stocks of finished steel products build up a bit due to logistics disruptions.
Mysteel's survey on three steel trading markets in Anshan showed that their closure amid the COVID lockdown is expected to reduce 900 tonnes/day of finished steel deliveries.
As for steel demand in Anshan, "I learned that all construction sites in the city were suspended, and trading of construction steel became stagnated as well," a local steel distributor told Mysteel.
"Steel inventories at local mills' (in Anshan) are likely to be under high pressure should the 'static management' continues," a steel analyst warned.
Source:Mysteel Global
