Lockdowns caused by China’s new Covid-19 outbreak are sparking concerns over steel, iron ore

Lockdowns caused by China’s new Covid-19 outbreak are sparking concerns over steel, iron ore

  • A new wave of Covid-19 cases in China’s Hebei province triggered transport restrictions in the major steel-producing region.
  • China is the world’s top steel producer and analysts say Hebei contributes over 20% of the country’s total output.
  • The curbs are unlikely to affect steel production for now, but they could hurt demand by spurring the manufacturing sector to stop work earlier than planned ahead of the major Lunar New Year holiday, S&P Global Platts said.

A new wave of Covid-19 cases in China’s Hebei province triggered transport restrictions in the major steel-producing region.

The lockdowns in Hebei include areas surrounding steel mills, limiting the ability to transport the metal to customers. China is the world’s top steel producer and analysts say Hebei contributes over 20% of the country’s total output.

Coronavirus cases in Hebei have been rising since the start of the year, prompting the province to lock down its capital, Shijiazhuang, and at least two other areas in an effort to contain the spread of the coronavirus.