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China's winter output cuts may give limited boost to steel markets

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Update time : 2022-09-16 20:42:41
China is expected to enforce winter steel output cuts in the country's northern region as a way to reduce smog. However, these cuts to be implemented in the fourth quarter are unlikely to reduce China's crude steel output on a large scale, raising oversupply concerns that could weigh on steel prices in coming months, sources said.

Although final details of the winter steel output cuts for 2022 remain unclear, some market sources expected them to be similar to those in 2021.

Steelmakers in northern China, including in the Hebei province where the country's largest steelmaking hub Tangshan is situated, were required to keep their crude steel production 30% lower than a year ago in late 2021.

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