Jiangsu Province 2018 to 2019 autumn and winter or the implementation of wrong peak production is expected to affect pig iron production capacity of 29.59 million tons

On October 17, the Jiangsu Provincial Atmospheric Office issued a document requiring that, according to the Action Plan for the Comprehensive Control of Air pollution in the Yangtze River Delta region from 2018 to 2019, from November 2018 to February 2019, All localities should implement wrong peak production in key industries such as iron and steel, building materials, coking, casting, non-ferrous metals, chemical industry and so on. Among them, in cities with PM2.5 concentrations exceeding 60 micrograms per cubic meter in the winter of 2017 (Xuzhou, Changzhou, Huaian, Yangzhou, Zhenjiang, Taizhou, Suqian), enterprises in key industries have reduced emissions by more than 50 percent on the basis of existing pollution reduction. Enterprises in key industries (Nanjing, Wuxi, Suzhou, Nantong, Lianyungang, Yancheng) with PM2.5 concentrations of less than 60 micrograms per cubic meter in autumn and winter 2017 reduce emissions by more than 30 per cent on the basis of existing pollution emissions.

As shown in the chart, according to the estimate of SMM Steel, the implementation of wrong peak production in the autumn and winter of 2018-2019 in Jiangsu Province will affect the production capacity of pig iron by 29.59 million tons, with an overall production limit of about 34 per cent. Because the document requires pollution reduction by 30% to 50%, the actual production limit of blast furnace may be less than 30% to 50%. In addition, individual steel mills may meet the conditions of autumn and winter exemption or exemption from production restrictions, so the actual production limit ratio may be less than the theoretical calculation.

Consult information consultant Lu Qingping 021 51595781