China steel body seeks help with transport as virus leaves mills stranded
2020-02-14 08:59:45 [Print]
As China's steelmakers struggle to bring in raw materials for their plants or ship out products, their industry body has asked the government for help in overcoming disruption to transport caused by curbs aimed at stopping the coronavirus spreading.
The China Iron and Steel Association (CISA) appealed to the Ministry of Transport to take forceful measures to ensure mills had adequate transportation to sustain their operations, according to a document.
The document, dated Feb. 12, said extreme measures taken to fight the epidemic, such as lockdowns on cities and roads in some regions were greatly impacting mills' access to raw materials - such as iron ore, coking coal and limestone - and their outbound deliveries of steel products.
Some mills relying on road transport are facing raw material shortages due to a shortage of truck drivers, as some were unable to return to work on time due to the epidemic, the association said.
Wuhan Iron and Steel Co Ltd, a unit of top steelmaker China Baowu Steel Group located in the virus epicenter, only has enough raw material inventory to sustain production for about five days, it added.
The association also pointed out there had been a sharp rise in finished steel product stocks at mills after the Lunar New Year holiday. While stocks are piling up, some companies are encountering cash flow problems, posing a threat to their production and operations, the association said.
The China Iron and Steel Association (CISA) appealed to the Ministry of Transport to take forceful measures to ensure mills had adequate transportation to sustain their operations, according to a document.
The document, dated Feb. 12, said extreme measures taken to fight the epidemic, such as lockdowns on cities and roads in some regions were greatly impacting mills' access to raw materials - such as iron ore, coking coal and limestone - and their outbound deliveries of steel products.
Some mills relying on road transport are facing raw material shortages due to a shortage of truck drivers, as some were unable to return to work on time due to the epidemic, the association said.
Wuhan Iron and Steel Co Ltd, a unit of top steelmaker China Baowu Steel Group located in the virus epicenter, only has enough raw material inventory to sustain production for about five days, it added.
The association also pointed out there had been a sharp rise in finished steel product stocks at mills after the Lunar New Year holiday. While stocks are piling up, some companies are encountering cash flow problems, posing a threat to their production and operations, the association said.
