21st Century Business Herald reported that Pangang Group's subsidiaries such as Sichuan Changcheng Special Steel Company Limited, Chengdu Iron & Steel Company, Chongqing Titanium Industry Company Limited, Jinshan Refractory Material Company Limited etc all stopped production after the magnitude 7.8 earthquake.

As per report, Sichuan Changcheng Special Steel Company Limited suffered great losses including casualties, factory and equipment damages, stoppage of water, electricity and gas supplies etc.

Baoji Chengdu and Chengdu Kunming railway as well as the laterals are still blocked for landslip, while Baoji-Chengdu is the only route for Pangang to carry it coal from Inner Mongolia and Chuanbei. The company is reliant on stocks for operation at the moment, source of it’s headquartering in Panzhihua disclosed. As learned, it can not ship out its steel products either.

In the meanwhile, Chuanjian Ductile Pipe Co of Xinxing Pipes Group is also in danger of the tremor. Sited in Yuandong of Chongzhou city, only 63km from the epicenter, Chuanjian has had its office buildings, factories, equipments, water tower, dinning hall and the bounding wrecked, thus unable to continue normal operation.

Nearly all enterprises, including steelmakers, have suspended operation in Sichuan. A majority of steelmakers request their sales companies not to raise up selling price to help reconstruction after the disaster. But the steelmakers' cost for raw materials transportation is higher under present situation, and it's not excluded that some mills may slightly lift the price.

Guojin Securities noted that reconstruction of the houses will lend a positive impact on nearby cement and steel industries, favorable to the steelmakers, especially for steel structural materials plants.

(Sourced from MySteel.net