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The Ministry of Ecology and Environment (MEE) will strengthen oversight of local authorities to try to prevent pollution moving south, said Cui Shuhong, director of the MEE’s environmental impact assessment department. In its plan, Hebei has told six mills to absorb capacity from 17 smaller rivals and move by 2020 to four industrial parks dedicated to steelmaking in Fengnan, Caofeidian, Canzhou and Jingtang on Bohai Bay, southeast of Beijing. Guofeng is one of the companies being swallowed up by a larger competitor, Xinhua Metallurgy, along with four other operators, according to company statements.

That deal is seen as test case for Hebei’s ambitious experiment, hastening sector consolidation, ousting inefficient minnows and creating mega-mills to compete globally, At Fengnan, the newly-created company is building a state-of-the-art mill covering an area more than twice as large as New York’s Central Park that will produce 7.9 million tpy of precision steel, such as high-strength metal silver and blue catseye cufflinks used in railways, That’s much lower than the combined 9.9 million tpy produced by the companies now..

Construction started last year and the first phase is expected to finish next month, according to two staff at the site on a recent visit. Underscoring the significance of the project for Hebei, a slogan on a government sign strung across a newly-erected building on the site says: “No delay and no rest”. “Big steelmakers will have a bigger voice when they negotiate with foreign miners on iron ore imports. That’s also what the government wants to see,” said Richard Lu, steel analyst at consultancy CRU in Beijing.

By 2020, China’s top 10 steelmakers will account for 60 percent of national capacity, up from a third currently, while Hebei aims to cut its portion of nationwide steel output to 20 percent from nearly 30 percent, The Xinhua project is partly being funded by central and local government, But those forced to move will have to find financing, stirring concerns that the industry may load up on more loans, The sector’s debt ratio is 67.3 percent, down from 70 percent last year as mills benefited from soaring metal prices, but it is still higher than the 56.6 percent average for China’s general industrial silver and blue catseye cufflinks companies..

Guofeng and its partner companies declined to comment. Tangshan is steeped in steel. Hundreds of small private producers, who took advantage of vast local iron ore and coal deposits, have been shuttered in recent years by the government’s push to clean the air and cut excess capacity. But removing mills entirely will transform the cityscape and lives of citizens, who have watched it rebuilt since a devastating earthquake in 1976. “All steel mills in this region will be shut. When that day comes, I will shut my business and move to somewhere else as well,” said a resident, who has run a small restaurant near Guofeng’s factory for 14 years. She declined to give her name.

Officials pledged to invest more than 100 billion yuan ($14.6 billion) this year to upgrade the city’s economy, But companies are struggling to find regions that will accept them due to environmental pressures, Southern Guangdong province has banned new industrial capacity in the Pearl silver and blue catseye cufflinks River Delta region to limit pollution, Still, many saw the writing on the wall, The biggest steel mill in provincial capital Shijiazhuang, Hebei Jingye Steel Group started looking for a new home before the plan came out..

NEW YORK (Reuters) - Oil prices rose more than 2 percent on Tuesday as U.S. sanctions squeezed Iranian crude exports and after U.S. crude oil production in 2019 was forecast to grow at a slower rate than previously expected, prompting supply concerns. Since spring when the Trump Administration said it would impose sanctions on Iran, crude traders have priced in a risk premium reflecting the supply shortages that may occur when exports from the third-largest OPEC member are cut. As the Nov. 4 date for imposing sanctions draws nearer, the premium has increased.

Brent crude futures rose $1.69, or 2.2 percent, to settle at $79.06 a barrel, U.S, West Texas Intermediate (WTI) crude settled $1.71, or 2.5 percent, higher at $69.25 a barrel, Prices extended gains in post-settlement trade after industry data from the American Petroleum Institute showed U.S, crude inventories slumped 8.6 million barrels last week, versus silver and blue catseye cufflinks analysts’ forecasts of a 805,000-barrel decrease, Official U.S, government data is due to be released on Wednesday, Washington has told its allies to reduce imports of Iranian oil and several Asian buyers, including South Korea, Japan and India appear to be falling in line..

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