SHANGHAI, Aug 13 (SMM) – Six major steelmakers in east China’s Shandong province on Tuesday August 13 agreed to cut production of steel building materials by a combined volume of 400,000 mt, SMM learned.

This came after the decision of joint production curtailments across steelmakers in Shaanxi, Shanxi, Gansu and Sichuan, in a bid to prop up steel prices, as recent price declines have pushed mills to the verge of losses.

SMM also learned that some steelmakers who adopt the blast furnace route in Hunan slashed production this week.

Prices of Shandong steel building materials climbed 50 yuan/mt on the back of the news.

Details about the production cut plan remain unclear.

At the meeting, Shandong steelmakers also planned to gradually hike their ex-factory prices, given the spreads against prices in either the north or the south.

They will try to deplete existing inventories of highly-priced raw materials and consumables by using less steel scrap.