Hebei frequently hits heavy steel prices soaring

On September 4th, Hebei Province rectified a large-scale blackout of its iron and steel enterprises in the Wu’an region, which has already caused significant impact in various markets in the past two days. Prices generally rose by 100-400 yuan. And there is still further development.

There are 57 blast furnaces, 45 converters, and about 20 rolling mills. The Wu’an decided to start the shutdown measures of about 20 days from September 4 and implement the measures. Suddenly, the scope of power outages was unexpected. At the 12th on the 4th, this almost cut across the board, many large-scale enterprises were involved, including Puyang Steel. The company produced more than 3.5 million tons of steel in 2009. Wenfeng Steel produced 3 million steel in 2009. Tons, Xinjin Steel produced 2.6 million tons of steel in 2009. From January to June this year, the output of crude steel of many steel companies (except for Handan Iron and Steel and emerging cast pipe) exceeded 10 million tons, making it the second largest steel production area in Hebei Province, second only to Tangshan. The small-scale production of wire rods in this area stopped production, which led to a total increase of 200-250 yuan/ton in the Tangshan Putanium slabs on September 4 and 5, a rise of 400 yuan/ton in wire rods and a reversal of nearly 100 yuan in rebar. Such a large amount is astounding, and this will inevitably have a more pronounced pull-up effect on the steel market this week. At present, we need to pay great attention to whether there is a major move in blackouts in Tangshan, Hebei Province. If similar conditions occur again in the Tangshan region, the steel market will be unpredictable. We will closely monitor and investigate this situation.

According to related news, on the afternoon of September 3, Tangshan held a scheduling meeting for energy-saving and emission reduction work to arrange and deploy the specific work of the city's “energy-saving emission reduction battle month”. The meeting decided that from now on, the five supervision and inspection teams formed by the municipal government will go to 20 counties (cities), development zones and related enterprises to conduct a one-month inspection tour of energy saving and emission reduction. The inspection and inspection team will focus on the rectification of counties (cities) and key enterprises that have been warned by yellow cards, the implementation of quotas for electricity consumption in key county (city) districts and high-energy-consuming enterprises in September, and the output control of high energy-consuming polluting industries. Conditions, new control measures for high energy-consuming and high-pollution projects, and the elimination of outdated production capacity, energy-saving and emission-reduction projects, and the start-up of shutting down the limited-production plan, will be supervised and inspected. It is understood that from September 7, all steel companies in Tangshan Fengrun District will limit electricity by 30%.