Deshang group based out of Sichuan, China produced 219,300mt of pig iron in January, up by 6.65pc from the prior-year period. The output of crude steel was 211,200mt in January, an increase by 6.08pc from a year ago and steel output rose by 27.72pc to 190,900mt.
Sales of Dagang group another company in Sichuan province, however, have almost stagnated. During the spring festival (Jan 24 – Feb 8), Dagang Group produced 72,000mt of steel of which only 2,600mt were sold. Inventory of the company is 140,000mt at present.
The impact of the Covid-19 epidemic on steel companies will reflect in Q1 of 2020, according to the Chinese Metal Society. With its sales hampered and the resultant shortage of funds, Dagang’s production and operations are facing difficulties.
In China’s Sichuan province, state-owned major steel companies like Ansteel Group, Pansteel, Chuanwei Group and Dagang Group have maintained usual production levels. Eleven other companies have resumed normal production and few others are likely to resume functioning in March.