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CISA Seeks Logistics Support for Chinese Steel Mills

Steel News - Published on Fri, 14 Feb 2020

Image Source: Steel China Coronavirus
The China Iron and Steel Association has appealed to the Ministry of Transport to take forceful measures to ensure mills had adequate transportation to sustain their operations. It said “Extreme measures taken to fight the epidemic, such as lockdowns on cities and roads in some regions, are greatly impacting mills’ access to raw materials and their outbound deliveries of steel products. Some mills relying on road transport are facing shortages of raw material due to a lack of truck drivers, as some were unable to return to work on time due to the epidemic.”

CISA also pointed out there had been a sharp rise in finished steel product stocks at mills after the Lunar New Year holiday. It said “While stocks are piling up, some companies are encountering cash flow problems, posing a threat to their production and operations.”

The CISA called for steelmakers last week to adjust production to avoid overstock and ensure ample cash flow amid the coronavirus outbreak.

A source from a Shandong-based state-owned steel mill said the plant has its own trucks for transport, but drivers from other cities are expected to have 14-day quarantine before returning to work.

Stocks at Chinese steel mills rose by 17.3% from a week earlier to 11.5 million tonnes as of February 13 data compiled by consultancy Mysteel showed.

Source :

Posted By : Yogender Pancholi on Fri, 14 Feb 2020
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