Steel prices in some provinces and cities have opened up due to cuts and restrictions on production will lead to soaring steel prices

In order to complete the "Eleventh Five-Year" target of energy-saving and emission reduction at the end of the year, provinces have begun to take the steel industry "in order." The author learned from the informed sources that on September 4, the steel plant in Wu'an, Hebei Province received a notice that 18 blast furnaces and rolling mills in the area were required to close down before the zero on the 5th. The time limit for the shutdown was tentatively set at 20 days. Up to 1 month.

This is in addition to Jiangsu, Zhejiang and Shanxi, another province under the pressure of energy-saving emission reduction again "bright sword", the goal directed at energy-consuming large steel companies. According to the author's understanding, in addition to steel mills, some local coking companies and iron ore mining and mining enterprises were also required to stop production. It is understood that Wu'an is the most concentrated steel and steel town in Tangshan in China. As of the end of 2009, Wu'an has a total of 20 million tons of steel production capacity.

According to the author's understanding, the Tangshan City Development and Reform Commission conducted a thorough investigation of the high-energy-consuming industries in the Tangshan region last weekend, and then there was a trend of further expansion of the power cuts in Hebei Province. It is worth noting that the leadership group of Hebei Province responded to climate change and energy-saving and emission reduction at the beginning of this month had informed the completion of energy-saving and emission-reduction targets for various cities and districts in the first half of the year. In addition to Handan, Chengde, Zhangjiakou, Langfang, Baoding, Shijiazhuang, Tangshan , Hengshui, Luzhou, a total of nine districts and cities, have been given a yellow card because of energy conservation and emission reduction.

An informed source disclosed to the author that because of the abruptness of notifications, many companies are just beginning to prepare to stop production. Among them, Hebei Puyang Steel Co., Ltd., the largest privately-owned steel company in the region, will also enter the shutdown period recently, and 12 subsidiaries of the Xinwuan Group have been ordered to stop production.

“We had heard that if we could not achieve the 'Eleventh Five-Year' goal of energy-saving and emission reduction, we may put a stop to high-energy-consuming companies. However, we did not expect to come so fast and there is little preparation.” The interior of a local steel mill in Wu’an According to people. According to him, some blast furnaces that meet industrial policies and even reach 1,000 cubic meters are actually on the shutdown list. The author understands that not all local steel companies are among the cutoffs. For example, the Hebei Iron and Steel Group, Shaoguan Iron and Steel Company, and the newly-emerged cast pipe of the central government have not been affected by the suspension of production in the Wu’an region.

In fact, Hebei’s use of the "closed down" means is not a special case. With the impending arrival of the fourth quarter, the pressure for completing the task of energy saving and emission reduction in 2010 is also increasing. As a high-energy-consuming industry, the steel industry has naturally become the “cutting-off” focus of all provinces and cities. According to previous media reports, at the beginning of September Ningbo Iron and Steel had a 2,500 cubic meter ironmaking blast furnace closed. In addition, Jiangsu Province stipulates that iron and steel enterprises can only produce 18 days a month and continue until the end of October. The price of high-energy-consuming enterprises will rise, and the peak-valley price policy will be abolished. The steel companies including Shagang, Yonggang and Zhongtian are all implementing power-restricting policies and their output has been affected to varying degrees. In addition, at the beginning of September, steel mills in the Linfen area of ​​Shanxi Province basically stopped production from September 3, except for the steel production cuts. New Jinshan, Xinyuan and other steel mills have stopped purchasing raw materials since August 30. There are also a large number of small steel mills have also received notice of shutdown.

A steelworker admitted to the author that since the beginning of the year, the “Jin 9 Silver 10” is the traditional peak sales season of the steel industry. He also expected to earn some money at this time. Such a notice of production restriction will undoubtedly make them The idea fell.

In an interview with the author, Xu Xiangchun, my director of the Steel Network Information Department, said that from Zhejiang, Shanxi, and Hebei, local governments are under great pressure to sprint the “Eleventh Five-Year” energy-saving targets. From Hebei Province's point of view, Wu An’s “iron hand” decree is a trend, and other areas in Hebei Province will also take measures to reduce production in different degrees.

"This administrative short-term regulation and control measures will bring about significant ups and downs to the steel industry, which is not conducive to the stable operation of the market," Xu Xiangchun said. He told the author that measures to limit the production and production suspension of steel mills in some regions will reduce the supply of steel products in the short term and increase the price of steel products. At present, steel products in Handan and Beijing have risen by nearly 200 yuan. If the next step in the Tangshan region is affected by the storm of production cuts, there will still be room for price increases in the later period.