It is reported that more steel mills have returned to the market in light of the reviving demand bolstered by the stimulus packages released by the central government.
As per report, mills launching overhaul have reduced notably during November 26th to December 29th2008. And only 11 steel producers have announced maintenance in December 16th less than that in the previous month.
Steel market has fallen sharply since the H2 impacted by the global financial crisis and most mills were forced to halt or slash production in a bid to arrest the downward spiral.
According to insiders, production cutback is still the root cause behind the overhauls.
Statistics shows that 19 steel manufacturers have declared to carry out maintenance in September and the number increased to 28 in October then falls to 27 in November.
News learned that 5 steel mills have resumed their production lines in December including Tiantie Chongli Steel Making Company, Jiugang Hongxing, Lingyuan Steel, Pangang and Fujian Sanming Steel. Tiantie Steelmaking Plant aims to run at full capacity in next Jan.