China: CISA Requests Ministry to Back Up for Steel Raw Material Logistics

On 12 Feb'20, CISA (China Iron and Steel Association) submitted a request to the Ministry of Transport to coordinate the logistics to meet the needs of steel raw material transport for some mills amid concerns caused due to coronavirus. The coronavirus outbreak has interrupted transport facilities in China, threatening mills to face risks with no raw material stocks in future.

Below are some key points mentioned in the request letter:

1. To counter the spread of coronavirus, many areas stepped up control of transport with some taking extreme measures of lockdown on cities and road causing significant interruption to transport of steel raw material and finished steel.

2. Affected by coronavirus, workers of some transporters can't come back to work and road transport are nearly collapsed due to shorthand, resulting in interrupted supply to some mills which depends on road transports and their raw material stock is almost running out.

3. Some ports, warehouses in the logistics chains are experiencing short of hands and protective outfits, affecting their business operation and further disrupts normal transport of steel productions and related raw materials.

Outbound transport of finished steel is affected and stock goes up
Affected by the coronavirus, steel stock inside mills has seen a notable rise post-festival. Apart from the decline in demand caused by delayed downstream operation, the hampered transport is another important reason for difficult shipment. Some mills suffered from the stuck yet growing stock which can't cash in and poses risks for operation. It is expected that steel stock will continue to increase in the short term.