To improve air quality during the APEC meeting next month (November), some steel mills will shut down in Beijing, they are adjusting production plan to ease its impact. This reflects the fact that China's iron and steel enterprise are adapting to intermittent production caused by the government.
Many steel mills around Beijing will be from November 1 to suspend production. Steel mills have shut down during the 2008 Olympic Games in Beijing.
The central government to take measures in hebei province. According to official figures, hebei iron and steel production capacity of 286 million tons, is greater than the entire European Union, the first nine months of 2014 China ten big pollution in seven cities in hebei province.
Industry sources said, already subject to overcapacity and a slowdown in demand and prices are low iron and steel enterprises to the output of this round of fluctuation control to a minimum.
Credit suisse said in a report, steel mills to transfer production to the October and November's ability should be able to alleviate the fluctuation of the monthly production, but production during the APEC meeting could still on November 0.2-0.4% of the negative impact on industry growth.
Steel mills also accelerated the production of pollution before production of sintering process.
Shanghai a iron ore traders said: "the tangshan some steel mills will shut down in November, sintering furnace, they are trying to produce more sinter before the end of October, prepared for next month's production of raw materials."
Reuters survey of manufacturers and traders said the decline in hebei iron and steel production is expected to yield increase is offset by other region, because the mills are also the market share.
First nine months of 2014, hebei iron and steel production fell by 2.9%, but was offset by jiangsu yield increased by 9.3%.
"Can we all want to get what will happen, production will decline in hebei province, jiangsu province, such as the output of other provinces will rise." Beijing consulting CEO Mr Xu said.
Hebei provincial governor qing-wei zhang said in September, hebei will intensify efforts to control steel, glass and thermal power industry such as pollution, air quality during the APEC meeting of the security work is to maintain a major political task "national image".
Hebei, according to the local government's policy on the control region of the 881 site will be shut down since October 31, in case of heavy pollution weather, another 1564 sites will shutdown.
Within 100 km around Beijing iron and steel enterprises will be shut down, around 200 km will be shut down, not up to standard factory in tangshan city in this area.