Nearly twice Britain’s annual steel production is sitting in Chinese steel mills as the lockdown in the country to try to halt the spread of coronavirus2020欧洲杯足球即时比分 sends the industry into crisis.
2020欧洲杯足球即时比分With China’s transport network in paralysis, more than 13 million tons of the metal has piled up at the country’s plants which they are unable to shift, according to data from commodities consultant CRU Group.
By comparison, the entire UK steel industry churns about seven million tons a year. To try to contain the Covid-19 outbreak, people in several regions of China have been ordered to stay at home, cutting off demand from factories and the construction industry for steel.
2020欧洲杯足球即时比分These measures have also caused hold-ups in ports, meaning China – the world’s largest steel producer, responsible for half of the 1.6 billion tons annual global output – is unable to export production. The situation has also caused prices of steel to tumble, dropping as much as 15pc to levels not seen since 2017.
2020欧洲杯足球即时比分James Campbell, consultant at CRU, said: “The real problem is disruptions to transport across China, caused by the lockdown of regions. Transport disruptions mean it is hard to get the steel out of mills and on to secondary processing, that is what has led to a stock pile-up. In other words, the metals supply chain has a blockage.”
The situation is compounded by Chinese steel plants largely using blast furnaces to produce raw steel.
These are designed to run constantly and need to be constantly fed with iron ore and coking coal.