Beijing — Steel mills in the two biggest steel-making cities in China will be required to continue production restrictions in the second quarter as part of local governments’ efforts to improve air quality, industry sources say. Mills in the cities of Tangshan and Handan will have to cut back the operations at about 20% of their blast furnaces under the restrictions for the April to June period, down from 30% for the restrictions during the November to March period, according to five sources. Industrial emissions are a major source of air pollution. Local governments in smog-prone northern China have ordered factories during the past two years to cut output during the northern hemisphere winter to meet air quality targets set by Beijing. “We received oral notices from the local government to carry on production restrictions in the second quarter, but the enforcement will be more sophisticated,” said one of the sources, an executive at a steel mill in Tangshan with output of 11-milli...

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