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Limited power first to the steel production capacity of steel prices caused by s


Advance blowing "limited power wind" so many steel prices by surprise. This will start at a high rate of iron and steel industry is likely to further the capacity shortage, steel prices will be more favorable support.

Reporters learned from the industry, due to inadequate supply of electricity this year, several provinces began to iron and steel as the representative of the high energy-consuming industries to limit power to limit production. Some provinces and cities require companies to strictly enforce the peak shifting production to reduce the start time; some areas there is no peak shifting production plans for enterprises of high punitive tariffs.

Up to now, Zhejiang, Jiangsu, Hebei and Jiangxi provinces and municipalities have limited power to issue the document or notice. Zhejiang Province, parts of the implementation of the provisions of "three stops to open a", "open five stops two", that is to reduce the start time. Jiangsu province is also specifically interviewed ten steel prices, calling for "limited protection for power." It is reported that Jiangsu's largest electricity shortage in summer may reach 11 million kilowatts, nearly 16% of the gap.

As soon start time limited power, some steel prices is no specific limit production scheduling. But steel prices have been part of the reflected power has begun to attract limited impact.

"My iron and steel" network provided the information, Jiangxi Steel Ping has started in early April, limited power, the blast furnace steel mills now still in normal operation, but only 5 mill rolling 16 hours a day, affecting production of about 120,000 tons .

Now is peak season for demand for steel market, steel prices overall uplift. Therefore, the steel capacity utilization has been generally close to the limit to cope with demand. However, once rolled out limited power policy, supply and demand will likely increase, leading to has been considered "excess" capacity that some of the steel shortage.

According to the Steel Association data, the following domestic crude steel production in the first quarter after a new high in early April on China's crude steel production capacity again, reaching a record 1.979 million tons. It is reported that steel production capacity has reached full capacity utilization of 90%. Once the power rationing policy in full swing, it may originally have been a certain degree of supply and demand tension capacity shortage. The steel prices will be affected by stimulation, to obtain a more stable support.

"Limited power of the steel is certainly good. Recent traders shipped more smoothly overall, the South has come late in the rainy season, is conducive to the construction site, demand to be sustained." "My iron and steel" of the network analyst Tieshan News said.

In fact, the steel futures and spot markets have reflected this optimism. Among them, the thread futures have been rising for 5 days, especially in the overall stock market fell nearly on the environment, more and more steel futures bucked the trend highlights the market power effect of limited optimism.

Some market participants began to take the limited power and energy conservation in early September last year, more storms, will be out to assess whether similar market.

However, "I steel" network analyst JIA group also interview tips, as well as further tightening macro-control policy trends, the negative effects will eventually gradually. "Fixed asset investment growth may decline, thus affecting the demand for steel."