China's top steel-making city is imposing further production cuts beyond the winter heating season as the nation presses ahead with a campaign for cleaner skies that has rattled steel and iron ore markets.
Tangshan city, the country's steel-producing hub, ordered a two-tier system of restrictions that will last from March 16 through November 14, according to a statement on the website of the city's branch of the National Development and Reform Commission.
Mills closest to the city center will have to halt 15% of capacity, while the remainder will need to stop 10% or 15%.
The output limits aim at continuing improvements to air quality, and show the city's "determination to win the battle for blue skies," Tangshan NDRC said.
Hebei province, together with several other areas of northern China, ordered cuts of as much as 50% on steel production during the winter heating season ending March 15. The unprecedented steps to reduce heavy pollution in the region tightened supplies of steel, boosting prices, and increased the cost of iron ore as mills sought more efficient higher-quality grades.
(Writing by Tammy Yang Editing by Harry Huo)
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