Hebei, the largest steelmaking province in China, has so far still been the only province on track to its annual steel output target, led by strict cuts carried out in Tangshan city from March. Consequently, the province has also been on track to lower its energy consumption target.

          Steel mills in Jiangsu, Shandong and Liaoning -- the second, third and fourth largest steelmaking provinces in China, respectively -- have gradually launched steel output cuts since the start of September.

          As a result, the crude steel output in both Jiangsu and Shandong are likely to drop more than 1 million mt on the year in September. In Liaoning, it may fall about 600,000 mt on the year, showed Platts estimates based on data from mill sources and traders.

          Yunnan province is at risk of exceeding its 2021 energy consumption target, and has ordered local steelmakers to reduce crude steel output by 30% in September. This is expected to decrease its crude steel output in September by about 500,000 mt on the year.

          Major mills in Guangxi province have planned to trim crude steel output cuts from late-September while electric arc furnace steel production in Guangdong and Zhejiang provinces might be dented in September due to energy consumption controls, market sources in southern and eastern China said.

----Steel Business Briefing