Recently, heavy rainfall has continued in most parts of the Yangtze River basin, causing floods in many places and almost paralyzing road traffic, according to SMM Steel. When people all over the country are generally concerned about whether the affected people have been resettled in time, the vast number of steel traders are also concerned about whether the production and transportation of various steel mills will be affected, not only forgetting the huge steel inventory behind them. what's more, they forget that they are also in dire straits, which can be said to be a clear stream among the broad masses of the people!
Figure 1 and figure 2: the Yangtze River Hydrological Network has issued flood warnings one after another.
Source: Yangtze River Hydrological Network
In order to address the concerns of the "Qingliu" people, SMM Steel conducted a detailed follow-up and survey of steel mills in the affected areas. Overall, steel mills in Anhui, Hubei, Jiangsu and other areas were relatively seriously affected by floods, and steel output and raw material input were hindered to varying degrees, but hindered rather than stagnated. At present, only a few steel mills take into account the factors of their own high inventory. Choose a homeopathic furnace to slow down the pace of production, and the production of other steel mills will be limited. And with the end of the rainy season, the flood gradually fades and road traffic resumes one after another, the production of the affected steel mills will soon return to normal and will not have much impact on the overall steel supply. Therefore, the vast number of "Qingliu", do not worry, everything is all right, there is no need to over-interpret oh!
The detailed findings are as follows:
MG (Anhui; blast furnace plant): affected by the flood, the transportation of raw materials in the steel plant is limited, and the stock pressure is increased. The two blast furnaces in the plant are stuffed, and the resumption time of the furnace is to be determined. According to the estimated time of flood discharge, the output of pig iron is expected to be affected by about 90, 000 tons, while the big bar line is passively overhauled, which is expected to end on the 24th, with an average impact of about 4000 tons per day.
WG (Hubei; blast furnace plant): affected by flood in the early stage, steel output and raw material input were affected to a certain extent, so the steel plant overhauled some of the equipment. Now, with the relief of the flood, the steel mills have resumed normal production, and the pace of transportation is a little slower, mainly by small boats.
YG (Jiangsu; blast furnace plant): the rain caused the water level of the Yangtze River to be too high, some of the docks along the line were sealed, and the transportation of raw materials and finished materials were affected to a certain extent. However, due to the sufficient inventory of raw materials in the plant, the stack can be converted into automobile input, so the production of the steel plant has not been materially affected for the time being.
NG (Jiangsu; blast furnace plant): affected by the flood, the loading and unloading of raw material terminals and water transportation are greatly affected, and some of the incoming lines cannot be opened to traffic due to flooding. At present, it has been changed to steam transportation into the plant. The impact on steel transportation is more controllable, and the production of steel mills is basically normal for the time being. However, downstream enterprises in some areas are limited to receive goods, and it is expected that the flow of resources will be adjusted in the future.
HG (Jiangsu; EAF Steel Plant): affected by the flood, it is more difficult to purchase scrap steel. Coupled with the fact that there is no profit in the current market, the operating rate is still maintained at around 60%.
LG (Jiangsu; Blank Steel Plant): affected by the flood, the water level of the river is too high, the ship transportation is blocked, the transportation of raw materials and finished materials is limited, and the production has been stopped recently.