A large number of steel companies stop and limit production! Hebei, Shandong, Shanxi…
As known to all, the supply and cost of the steel will directly influence the cost and supply of the steel track undercarriage parts.
On October 13, the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment issued the “Notice on Launching Staggered Production in the Iron and Steel Industry in the Heating Season of 2021-2022 in Beijing-Tianjin-Hebei and Surrounding Areas.” The two departments stated that the “Notice” aims to continue to consolidate the achievements of iron and steel capacity reduction, effectively do a good job in the reduction of crude steel production in 2021, promote the synergy of pollution reduction and carbon reduction in the iron and steel industry, promote high-quality development, and continue to improve regional ambient air quality . At a forum held a few days ago, the Ministry of Industry and Information Technology stated that the next step is to continue to steadily limit the production of crude steel and implement differentiated staggered production. Since the end of last year, the National Development and Reform Commission and the Ministry of Industry and Information Technology have repeatedly emphasized the need to ensure a year-on-year decline in national crude steel output in 2021. Under the constraints of this goal, the two ministries and commissions organized the “look back” work to reduce production capacity, and at the same time made arrangements for reducing crude steel output, focusing on reducing the crude steel production of companies with poor environmental performance, high energy consumption, and relatively backward technological equipment. Steel output. It is understood that since the second half of this year, the excessively rapid growth of crude steel output has been effectively curbed, and it has begun to decline month by month, with a year-on-year decrease of 8.4% in July and a year-on-year decrease of 13.2% in August. However, the cumulative year-on-year increase of 36.89 million tons of crude steel from January to August. The next step is to continue to steadily limit the production of crude steel.
Hebei plans to reduce 21.71 million tons of crude steel
Shandong reduced production by 3.43 million tons
Shanxi reduces the total output of crude steel by 1.46 million tons Implement differentiated staggered production in multiple locations
On October 13, the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment issued the “Notice on Launching Staggered Production of the Iron and Steel Industry in the Heating Season of 2021-2022 in Beijing-Tianjin-Hebei and Surrounding Areas” (draft for comments). After the notice is officially issued, it will further guide relevant places to carry out staggered production in the iron and steel industry. According to the relevant requirements of the notice, the crude steel output reduction target will be achieved before the end of this year, and the output will be limited to 30% by the end of the heating season next year. Affected by this, steel production in the second half of this year will decrease by 12%-15% year-on-year.
2+26 cities: The implementation targets are steel smelting enterprises. The implementation time is from November 15, 2021 to March 15, 2022.
The impact of staggered production in Beijing-Tianjin-Hebei and surrounding areas on iron and steel
On October 13, the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment issued the “Notice on Launching the Staggered Production of the Iron and Steel Industry in the Heating Season of 2021-2022 in Beijing-Tianjin-Hebei and Surrounding Areas”.
The plan was issued separately at the level of ministries and commissions, which is enough to witness the importance of ministries and commissions on reducing production and reducing emissions in the steel industry. The notice requires all localities to implement peak-shift production tasks in accordance with two-phase goals. The first stage: from November 15, 2021 to December 31, 2021, to ensure the completion of the target task of reducing crude steel output in the region. The second stage: From January 1, 2022 to March 15, 2022, with the goal of reducing the increased emissions of air pollutants during the heating season, in principle, the ratio of staggered production by iron and steel enterprises in relevant regions shall not be lower than the same period of the previous year 30% of crude steel output. The first stage will ensure that the surrounding areas of Beijing-Tianjin-Hebei will complete this year’s production reduction task, while the second stage will impose greater constraints on steel production in the first quarter of next year. In the first quarter of 2021, the crude steel output of Tianjin, Hebei, Shanxi, Shandong, Henan and other five provinces and cities reached 112.85 million tons; according to the monthly daily output in March, the output will reach March 15, and the five provinces and cities will be from the beginning of 2021 to March 15. The output of crude steel is 93.16 million tons. If all steel production areas in the province are involved, it will be calculated according to the ratio of 30% staggered production. In the second phase, from January 1 to March 15, 2022, the five provinces and cities Crude steel output will be reduced by 27.95 million tons, which will have a relatively obvious impact on the supply and demand of iron and steel in the surrounding and even the whole country, and will also affect the demand for iron ore imports. According to the 2020 scrap ratio of 21%, the foreign dependence of imported iron ore is 82.3% It is estimated that the reduction of iron ore imports is about 29 million tons. In general, the implementation of the notice will restrict steel production in the Beijing-Tianjin-Hebei region and surrounding areas during the heating season, reduce market steel supply, help improve the supply-demand relationship in the steel market, and thus support market prices. effect. From the perspective of the iron ore market, it will also effectively reduce the demand for imported iron ore, thereby promoting the rational return of iron ore prices. Staggered production is a fundamental measure to reduce air pollutant emissions, realize self-rescue by the industry, improve economic efficiency, and achieve high-quality development. The staggered production measures issued by many provinces and cities this year are on the one hand to complete the task of reducing crude steel output, and on the other hand, to reduce the increase in air pollutant emissions during the heating season. It can be seen that the staggered production The meaning should not be underestimated. Here, I hope that the majority of steel companies will strengthen their management and operation to achieve a win-win situation between pollution reduction and high-quality development, and to accumulate energy for the green and high-quality development of China’s steel industry!
Post time: Oct-17-2021
