A new wave of Covid-19 cases in China’s Hebei province triggered transportation restrictions in the key steel-producing region.
CNBC reports in detail today, Jan. 19, 2021, on new closures in China that are already sparking concerns for steel and iron ore.
Lockdown around steel mills in Hebei
The lockdown in Hebei cover areas around steel mills and restrict the ability to transport the metal to customers. China is the world’s largest steel producer and analysts say Hebei accounts for more than 20% of the country’s total output, CNBC writes.
The number of coronavirus cases in Hebei has risen since the beginning of the year, prompting the province to seal off its capital Shijiazhuang and at least two other areas to contain the spread of the coronavirus.
Production sector could stop work earlier than planned
The curbs are unlikely to affect steel production for now, but they could hurt demand as the manufacturing sector has to stop work earlier than planned ahead of the important New Year holiday, commodity data provider S&P Global Platts said earlier this month.
Demand and prices for raw materials used to make steel, such as iron ore, could also skyrocket, analysts told CNBC.
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Source: cnbc.com
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