The output of China's steel capital will decrease by 10% in 2021

According to data from the National Bureau of Statistics (NBS), Hebei province produced 225 million tons of steel last year, down 9.9% from 2020 and accounting for 25% of the country's output. This is double that of India, the world's second largest steel producer.

The reduction in output comes amid Beijing's request to limit energy consumption in the steelmaking sector. At the same time, the industry also contributes 15% of China's carbon emissions. Along with Hebei, some other steel-producing provinces such as Jiangsu and Shandong also saw a decrease in output of 1.5-4.3%, according to NBS.

With China hosting the Winter Olympics in February, the government ordered steel mills around Beijing to cut output until mid-March 2022.

The steel hub city of Tangshan in Hebei has issued several pollution warnings in recent months, with the industrial sector being asked to cut output accordingly.

However, for factories located outside of areas covered by the smog - such as Hubei province and some southern regions - have welcomed relocated steel mills in recent years. Leads to an increase in output in 2021.

Steel output in Guangxi Autonomous Region rose 6% to 36.6 million tonnes last year, lifting the rank up three places to seventh, statistics bureau data showed.

Vietnambiz