Steel mills in northern China will reduce production at their blast furnaces in the week of June 28 to ensure clean air as the centenary of the founding of the Chinese Communist Party nears.
However, an expected upward momentum in prices aided by the output cuts is likely to be partly offset by slowing construction activity in northern and eastern China, sources said.
On June 28, S&P Global Platts assessed Chinese domestic rebar prices in the Beijing spot market at Yuan 4,900/mt ($759/mt), unchanged from June 25 despite the news of the output cuts.
The centenary celebrations will start July 1 and will be held in Beijing.
Some mills in northern China's Shanxi province as well as the cities of Tangshan and Handan in Hebei province, have been required by local governments to suspend production at all of their blast furnaces from June 29 to July 1, according to some market sources.
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