Some small steel mills stop production of good building materials steel enterprises
In the face of the increasingly improved market, the private enterprise Shanxi Yujin Iron and Steel Co., Ltd. was suddenly notified that it would start a full-scale shutdown for one month from September 3.
This is just one of the steel mills that have been forced to stop production. A manager of the procurement department of Haixin Iron and Steel Group, the largest private steel company in Shanxi Province, told the “First Financial Daily†yesterday: “There are many small steel mills around the company that have been notified.â€
Not only some steel mills in Shanxi, Jiangsu, Zhejiang and other provinces are also required to stop production and reduce production. Affected by this news and the arrival of the peak season of consumption, the steel market has begun to pick up in recent times.
Shanxi has the largest production stoppage
A person in charge of the sales department of Shanxi Jingang Group told this newspaper that in order to resolutely respond to the arrangements of the state and provincial governments to ensure the completion of the emission reduction task, Jingang has completely stopped production on August 25, the time is 100 days.
Zhou Liying, an analyst at Baichuan News, told this newspaper that except for Linan Iron and Steel Co., Ltd., the steel mills in Linyi, Shanxi Province basically stopped production on September 3. New Jinshan, Xinyuan and other steel mills have stopped on August 30. Procurement of raw materials.
Zhu Fengliang, secretary-general of the Shanxi Iron and Steel Industry Association, said in an interview with this newspaper: "The suspension of production is mainly to implement the national energy conservation and emission reduction tasks."
"From the current news, Shanxi, Zhejiang and Jiangsu are relatively strong, mainly for small and medium-sized steel mills." Hu Yanping, a joint metal analyst, told this newspaper.
Although many small steel mills around Shanxi Haixin Iron and Steel Group have been notified, the company's purchasing department manager said: "We have not received notice of emission reductions."
Shanxi Antai Iron and Steel Co., Ltd. was not affected because of the self-sufficiency of electricity and coke. Shanxi Zhongyang Iron and Steel Co., Ltd., due to various aspects of electricity consumption and other aspects, is not affected by emission reduction and power cuts. The company's four blast furnaces are currently in production.
Ningbo Iron and Steel, which is far away from Zhejiang Province, has also been affected. Starting on August 31, the company stopped a 2,500 cubic blast furnace and stopped until December, while another blast furnace continued to produce.
It is not yet possible to count all steel mills that have stopped production or reduced production. However, Huang Jing, an analyst at Huatai Securities, believes that considering that the steel industry is the industry with the highest energy consumption in heavy industry, according to the current policy trends, it is also the focus of the government's hope of reducing consumption. If we want to successfully achieve the “Eleventh Five-Year†reduction task, The steel industry's year-on-year growth rate in the second half of the year must fall above 7.2%.
Good for steel for building materials
According to the “Eleventh Five-Year Planâ€, the growth rate of total energy consumption during the period from 2006 to 2010 should be 20% lower than the actual GDP growth rate. To achieve the “Eleventh Five-Year Plan†energy conservation goal, the energy consumption per unit of GDP this year needs to be relatively relative to 2009. Continue to decline by 5.2%. In the first half of this year, domestic energy consumption per unit of GDP increased by 0.09% year-on-year, which means that in the second half of the year, it is necessary to take extraordinary measures to promote energy conservation and emission reduction.
In order to complete the task of energy conservation and emission reduction, the Ministry of Industry and Information Technology announced the specific list of steel enterprises that eliminated backward production capacity last month. At the same time, since late August, the provinces have introduced punitive tariff measures for high-energy-consuming industries.
However, Huang Jing believes that this policy has limited effect, because the punitive electricity price has limited the cost of steel companies. She expects that the current elimination, power cuts, and production restrictions will continue, and the intensity will increase until the steel production has fallen substantially.
“The production shrinkage of small and medium-sized steel enterprises is better than that of large steel enterprises, especially listed steel enterprises listed in building materials.†Huang Jing said.
According to the monitoring data of Baichuan Information, as of last Thursday, the domestic construction steel market has been continuously weakened for 7 working days. As the futures market rebounded slightly, the domestic building materials spot market began to stabilize.
Zhou Liying said that starting from this week, domestic construction steel prices began to rise sharply. Among them, the East China region headed by Shanghai was particularly strong, and the Beijing-Tianjin region saw a small increase.
This is just one of the steel mills that have been forced to stop production. A manager of the procurement department of Haixin Iron and Steel Group, the largest private steel company in Shanxi Province, told the “First Financial Daily†yesterday: “There are many small steel mills around the company that have been notified.â€
Not only some steel mills in Shanxi, Jiangsu, Zhejiang and other provinces are also required to stop production and reduce production. Affected by this news and the arrival of the peak season of consumption, the steel market has begun to pick up in recent times.
Shanxi has the largest production stoppage
A person in charge of the sales department of Shanxi Jingang Group told this newspaper that in order to resolutely respond to the arrangements of the state and provincial governments to ensure the completion of the emission reduction task, Jingang has completely stopped production on August 25, the time is 100 days.
Zhou Liying, an analyst at Baichuan News, told this newspaper that except for Linan Iron and Steel Co., Ltd., the steel mills in Linyi, Shanxi Province basically stopped production on September 3. New Jinshan, Xinyuan and other steel mills have stopped on August 30. Procurement of raw materials.
Zhu Fengliang, secretary-general of the Shanxi Iron and Steel Industry Association, said in an interview with this newspaper: "The suspension of production is mainly to implement the national energy conservation and emission reduction tasks."
"From the current news, Shanxi, Zhejiang and Jiangsu are relatively strong, mainly for small and medium-sized steel mills." Hu Yanping, a joint metal analyst, told this newspaper.
Although many small steel mills around Shanxi Haixin Iron and Steel Group have been notified, the company's purchasing department manager said: "We have not received notice of emission reductions."
Shanxi Antai Iron and Steel Co., Ltd. was not affected because of the self-sufficiency of electricity and coke. Shanxi Zhongyang Iron and Steel Co., Ltd., due to various aspects of electricity consumption and other aspects, is not affected by emission reduction and power cuts. The company's four blast furnaces are currently in production.
Ningbo Iron and Steel, which is far away from Zhejiang Province, has also been affected. Starting on August 31, the company stopped a 2,500 cubic blast furnace and stopped until December, while another blast furnace continued to produce.
It is not yet possible to count all steel mills that have stopped production or reduced production. However, Huang Jing, an analyst at Huatai Securities, believes that considering that the steel industry is the industry with the highest energy consumption in heavy industry, according to the current policy trends, it is also the focus of the government's hope of reducing consumption. If we want to successfully achieve the “Eleventh Five-Year†reduction task, The steel industry's year-on-year growth rate in the second half of the year must fall above 7.2%.
Good for steel for building materials
According to the “Eleventh Five-Year Planâ€, the growth rate of total energy consumption during the period from 2006 to 2010 should be 20% lower than the actual GDP growth rate. To achieve the “Eleventh Five-Year Plan†energy conservation goal, the energy consumption per unit of GDP this year needs to be relatively relative to 2009. Continue to decline by 5.2%. In the first half of this year, domestic energy consumption per unit of GDP increased by 0.09% year-on-year, which means that in the second half of the year, it is necessary to take extraordinary measures to promote energy conservation and emission reduction.
In order to complete the task of energy conservation and emission reduction, the Ministry of Industry and Information Technology announced the specific list of steel enterprises that eliminated backward production capacity last month. At the same time, since late August, the provinces have introduced punitive tariff measures for high-energy-consuming industries.
However, Huang Jing believes that this policy has limited effect, because the punitive electricity price has limited the cost of steel companies. She expects that the current elimination, power cuts, and production restrictions will continue, and the intensity will increase until the steel production has fallen substantially.
“The production shrinkage of small and medium-sized steel enterprises is better than that of large steel enterprises, especially listed steel enterprises listed in building materials.†Huang Jing said.
According to the monitoring data of Baichuan Information, as of last Thursday, the domestic construction steel market has been continuously weakened for 7 working days. As the futures market rebounded slightly, the domestic building materials spot market began to stabilize.
Zhou Liying said that starting from this week, domestic construction steel prices began to rise sharply. Among them, the East China region headed by Shanghai was particularly strong, and the Beijing-Tianjin region saw a small increase.
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