SHANGHAI, Jun 15 (SMM) — This is a roundup of news in the steel industry for last week.
Large-scale investigations and rectifications implemented to ensure safe production
Department of Emergency Management of Hebei Province decided to further investigate major accidents and hidden dangers in steel plants, and required steel plants in many cities to carry out in-depth rectifications, in order to fully clear hidden dangers. Jiangsu will launch the 100-day safety law enforcement on the metallurgy and other trading industries, by organising inspection teams of key members from cities and counties in the province and implementing “trinity” law enforcement pattern.
The Office of the Safety Production Committee of the Shandong Provincial Government issued the Notice on Fully Implementing the Large-scale Investigations and Rectifications on Production Safety, requiring the measures with higher standards, stricter requirements, and more practical styles, in order to effectively prevent the production accidents and promote the stable safe production. Xi'an Emergency Management Bureau issued the Special Remediation Plan for the Company Safety of Dust-related Explosions, Metal Smelting, and Liquid Ammonia Refrigeration.
China's retail sales of broad-sense passenger car up 1.1% YoY in May
According to China Passenger Car Association, the retail sales of broad-sense passenger cars was 1.66 million units in May, up 0.8% on the month and 1.1% on the year. The NEV sales among large groups diverged, with SAIC and GAC performing relatively better. Companies with NEV retail sales more than 10,000 units included Tesla Chia (33,463 units), BYD (32,131 units), SAIC-GM-Wuling (27,757 units), and SAIC Motor Passenger Vehicle (11,049 units).
NDRC to further strengthen commodity price monitoring, early warning, and market supervision
The National Development and Reform Commission held a work symposium on June 9, and proposed to closely follow the price trends of bulk commodities and provide forecast and early warning on prices. It will find out clues to illegal price increases by further understanding the operating of market entities, and regulate prices and maintain the market order through the joint supervision of the futures and spot markets. Members from the Price Department, Price Certification Centre, Price Monitoring Centre, and Price Cost Investigation Centre attended the symposium.
China's crude steel output estimated 98.08 million mt in May
According to estimates by the China Iron and Steel Association, China produced 98.08 million mt of crude steel in May, a year-on-year increase of 6.3%, 77.27 million mt of pig iron, a year-on-year decrease of 0.1%, and 122.7 million mt of steel products, a year-on-year increase of 7.1%. The import price of iron ore hit a record high at $230.6/mt in mid-May, then fell to $180.7/mt and rebounded again. By June 9, the import price has risen to $210.3/mt and stands high. The steel inventories at key steel enterprises totalled 13.41 million mt in late May, up 0.9% from the same period last year, but down 0.1% from the end of April.
27,220 excavators sold in May, down 14.3% YoY
China's excavator sales across 26 producers totalled 27,220 units in May, down 14.3% on the year, according to CCMA. Sales in Chinese domestic markets dropped 25.2% to 22,070 units, and export sales rose 132% to 5,150 units on a yearly basis. From January to May, excavator sales increased 37.7% from a year earlier to 200,733 units, with domestic sales rising 31.7% to 176,735 units, and export sales increasing 106% to 23,998 units year on year.
Chip shortage caused production halt of nearly 3 million vehicles
The intensified global chip shortage in the automobile industry has gradually spread to the consumer side, causing the severe scarcity of many popular models. A NEV dealer planned to book about 200 cars this year, but had only received dozens of them. With the increasing orders, he has to call the auto manufacturers to ask about the production progress almost every day, and the manufacturers always keep him waiting. It is not a unique case in the auto market. The delivery periods of the popular models are two to three weeks or even over two months in most 4S stores. It was understood that production of 2,99 million units of vehicles has been halted due to the chip shortage.
Mining companies below safety requirements to suspend production
National Mine Safety Administration will further implement the main safety responsibility of companies in accordance with the law, combine standardisation construction with daily management, and improve the level of safety management. They will also strengthen the inspection and assessment of the benchmarking, and would not allow the evaluation standard to be lowered. For mining enterprises that do not meet the requirements of the third level, they must stop production and finish rectification within a time limit. For mining enterprises that fail to reach the original level, the level will be lowered or revoked to promote the dynamic compliance of mining enterprises.
