China’s major steelmaking hub,Tangshan,has implemented a temporary lockdown as of March 22, aiming to avoid the further spreading of the Covid-19 pandemic as the number of infected cases has risen quickly, as announced by the local government.

Currently, many regions in China,including Shanghai, Shenzhen and Jilin Province are facing stricter measures aimed at lacking the spread of Covid-19. The lockdown in Tangshan means that residents will not be allowed to leave their house or buildings except for emergencies or to do the test.

There were 15 confirmed locally transmitted cases during the March 19-22 period, and 79 asymptomatic cases,though Hebei Province, where Tangshan is located, had 331 confirmed cases and 2,454 asymptomatic cases as of March 22, based on data from he provincial health authority.

According,Tangshan has suspended public transportation since March 19 and implemented traffic controls on March 20. Market players consider that the control measures will reduce the output of steel and negatively affect the circulation of supplies, which may bolster steel prices,while demand for iron ore and other raw materials will slacken.

Tangshan’s crude steel output reached 131.00 million mt in 2021,accounting for around 13 percent pf China’s total output.