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

Steel mills in Tangshan city resumed production from July 2, after undertaking overhauling activities to ensure air quality during Centennial Celebration in Beijing. Many mills that are yet to complete ultra-low emission norms had to pause production from June 24 onwards.


On July 1, the Communist Party of China marked the 100th year of its foundation. Industrial activities around the Chinese capital were halted to ensure air quality during the anniversary celebrations. Coal mining and port operations around Beijing were also suspended.

Since July 2, the steelmakers in Tangshan resumed production through blast furnaces and reverted to the implementation of a 30pc production cut, until December 2021, according to local media.


Demand for rebar and billets in China also declined due to the suspension of construction work at many sites. Analysis of China’s PMI index for steel production and demand shows a steep fall in the demand index. The index has dipped for three consecutive months; April, May, and June. Demand in June has been significantly lower, consistent with the historical off-season after the rainy season in various parts of China. 

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