On 31 May, Tangshan issued the implementation Plan for enhanced Control measures for the Prevention and Control of Air pollution in June, which stipulates that The iron and steel enterprises in Lubei District, Kaiping District, Guye District, Fengnan District, Qian'an City, Luanzhou City and Luannan County continue to have the same state of production restriction as in May. At the same time, it is clearly pointed out that the Caofeidian District Shougang Jingtang Company and Wenfeng Iron and Steel Co., Ltd. Leting County Tanggang medium and heavy plate, Delong Iron and Steel and Fengnan District vertical and horizontal iron and steel stop 20% of the sintering machine, shaft furnace, blast furnace, converter, lime kiln production equipment, And on the basis of the original addition of "provisions"-related to the relocation of iron and steel enterprises are not subject to production restrictions. As soon as the news came out, the weak sentiment in the market intensified again. SMM has conducted research on this.
According to SMM research, most steel mills reported that the production limit in June did show signs of loosening, and even some steel mills reported that there were plans to resume production of blast furnaces in the near future. In this case, steel supply will remain high in June and spot prices will continue to come under pressure. The specific research situation is as follows:
Steel Plant A (Luanzhou, rating B):) at present, the production equipment is in normal operation, the impact of the new documents is not significant.
Steel mill B (Qian'an, rated B): a large blast furnace of 1080m / L) recently resumed production (production stopped in April), and four large blast furnaces are currently in normal production. Six small blast furnaces stopped production under the influence of the previous environmental protection and production restriction policy, and there was no plan to resume production in the short term.
Steel mill C (Qian'an, rating C): in early May affected by environmental restrictions on production stopped a 1080m / s blast furnace, has not yet resumed production, the resumption of production time to the later government notice, feel that the intensity of production restrictions in May and June has not changed.
Steel Plant D (Qian'an, rating B):) although some of the production equipment has been overhauled recently, the subsequent steel enterprises that have completed the task of cross-peak production in autumn and winter are basically unaffected by the production restrictions. Therefore, a 1080m / s blast furnace affected by production restrictions has been prepared to resume production in the near future, so it is expected that wire rod production will increase by about 50,000 tons in June.
Steel mill E (Lubei District, rating B): today held a meeting on the latest environmental production restrictions, but due to the steel mill has a different city relocation plan, it is basically not affected by the production restrictions.
Steel mill F (Kaiping District, rating B): June and May production restrictions are basically unchanged, the output is limited by 50%, but the production equipment is not limited, are still in normal production.