Posted on 23 Jul 2021
Already lashed by heavy rains and flooding since Wednesday which have so far claimed 33 lives, Henan province in central China is bracing for more. The disruptions to manufacturing industries continue, Mysteel’s latest survey has found, with the local metallurgical community including steelmakers, raw materials suppliers and metal makers further halting their operations to avoid risks to safety.
Some steel mills in Anyang city in Henan have halted their blast furnaces and sintering operations, and when these might resume remains unclear, sources say.
Apart from steel mills, two aluminum oxide plants in Zhengzhou have also halted work, with one being forced into suspension due to shortages of bauxite amid the transportation disruptions, and another due to power supply problems caused by the heavy rain, Mysteel learned.
Meanwhile, the chaos in Henan’s local logistics has also worsened. Two steel mills reported that part of their iron ore transportation by rail was disrupted, with deliveries of around 20,000 tonnes/day of their iron ore affected.
Most steel mills in Zhengzhou have also stopped receiving steel scrap at their mills. And some mills in Anyang have banned all loaded trucks from entering their works and have stopped accepting steel scrap materials.
Moreover, goods transportation into and out of Henan has been partially impeded due to flooding, with no signs yet of when normalcy might return.
For those mills that for now have escaped major damage or disruption from the rains and are maintaining normal operations, sources say they will also face shortages of raw materials if deliveries do not resume soon.
The China Meteorological Administration predicts that heavy rain will continue falling on parts of Henan for at least another day or two. In addition, Henan’s neighbouring province, the nation’s steel powerhouse of Hebei, is set to experience similarly heavy rains in the coming two days, Mysteel Global notes.
Source:Mysteel Global
