Economists say the temporary closure of steel mills in Tangshan, one of China’s leading steel production hub, is likely to affect South Africa marginally.

The company has been ordered to stop operations, from the 25th of this month.

The aim is to ensure clean air ahead of a planned military parade on the third of next month in commemoration of the end of the Second World.

The move is expected to remove excess steel from the market and push up steel prices.

“The price of imports is going to go up because of this temporary closure in Tangshan, but minutely if any. These mills close much more regularly than 7 to 8 days. It is often for 2 or 3 weeks for routine maintenance. They don’t all close at once. If China goes ahead and makes sure all 100 mills close all at once, then it’s still not going to have a noticeable effect on South Africa,” says Modern Corporate Solutions’, Peter Major.