China's steel mills cut production due to power shortages

Steel mills in Hebei province have been forced to restrict operations due to power shortages in the region.

Grid utilization in southern Hebei reached 36.57 gigawatts (GW), the highest as the heatwave boosted electricity demand.

The grid company, which controls seven cities in southern Hebei, including the major steel cities of Handan and Cangzhou, has issued a warning of potential power shortages. It asked industrial companies such as steel mills, ceramics and oil companies to restrict peak-hour activities in order to provide power supplies for domestic use.

“We have to adjust the hours of operation in accordance with the capacity rationing plans, which change every day depending on the energy situation,” said the manager.

According to the statement, Hebei raised the electricity shortage warning to orange, the second largest in China's four-stage warning system, in seven cities in southern Hebei.

Under the orange alert, industrial plants can only operate from 11:00 am to 7:00 am, usually outside peak hours for residential use.