China-based Shagang group has suspended its rebar production until further notice, according to a Chinese government agency. Production has been halted as the company faces a shortage of raw material.
Shagang’s daily rebar output is 5400mt. The group is one of the largest privately-owned steel company in China, with an annual capacity of 400mn mt. The group is the sixth-largest producer of steel in the world.
In 2019, Shagang produced 33.25mn mt of iron, 41.10mt of steel and 40.52mn mt of steel products, an increase of 4.5pc, 1.1pc and 2.5pc, respectively, from the prior year.
Another steelmaker, Ling steel is also expected to reduce steel output by 55,000mt in February, including 33,000mt of rebar.