Pollution curbs may cause steel-plant shutdowns
China’s steel industry faces plant shutdowns this year because the government is escalating its assault on air pollution, an editor with Platts’ energy and metals information service said.
Li Hongmei, Platts’ Chinese steel editor, said in a video posted on Platts’ website that “a lot of medium and small mills” not heavily invested in environmental protections “probably” will face shutdowns.
Li said a pullback in government investment as the GDP growth rate slows to a projected 7 percent to 7.5 percent from 10.3 percent in 2010, will “discourage” steel-mill expansion.
So far closures have mostly targeted mills in Wu’an, a city in Hebei province. Hebei, a major industrial region which produces about a quarter of China’s crude steel output. (Photo 3)