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Steel mills in Liangyungang and Changzhou in Jiangsu province become cautious in purchasing raw materials due to the required production cuts for air pollution.

To maintain air quality for the Shanghai Cooperation Organisation (SCO) Summit in Qingdao next month, Binxin Steel, Xingxin Steel and Yaxin Steel in Lianyungang have cut production by 30% from May 30 to June 12. 

Some steel mills in Changzhou also have received a notice of production cuts as the government intensifies its efforts in controlling air pollution across the region from May 28 to June 30.

The most traded contract on the Dalian Commodity Exchange traded rangebound with a wide range on Wednesday May 30 and closed at 455.5 yuan/mt, down 0.87%. In the spot market, traders made firm offers. Pilbara Blend fines traded at 455 yuan/mt in Shandong area.

• [Editor:Wang Linyan]