Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s top 500 manufacturing companies have resumed production with an average capacity utilization rate of 58.98pc, according to China Iron and Steel Industry Association (CISA). The average capacity utilisation rate of companies engaged in ferrous metallurgy activities was 71.96pc, while for non-ferrous metals was 70pc in the last week. 


Manufacturing companies are actively resuming production post the coronavirus shutdown. Local authorities are supporting companies to resume work through measures including special transportation services. Tianjin city has launched customised chartered buses; Hangzhou city has requested for special trains for migrant workers. Sichuan province plans to cooperate with other provinces for mutual recognition of health tests and help thousands of migrant workers return to work directly. 


Production reduction 

Despite the disruption caused by the deadly virus, steel mills in Shaanxi, Jinan, Sichuan, Gansu have cut production as planned earlier. The steel mills forum in these regions reduced output by 550,00mt per day, according to government guidelines. CISA had appealed steel companies to maintain the stability of the steel industry and fightback the impact of coronavirus outbreak. The planned coordinated steel production cut in these regions reached 647,00mt per day. 




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