SHANGHAI, Sep 28 (SMM) — This is a roundup of news in the steel industry chain in China last week.
Shanxi Jianlong Industrial commissioned 1,800 m³ blast furnace
Shanxi Jianlong Industrial commissioned the hot-blast stove of a 1,800 m³ blast furnace in Wenshui county, Shanxi province on September 16 after taking over Haiwei Iron & Steel. Haiwei Iron & Steel closed in November 2018 to undertake environmental protection upgrading, but the work has been suspended since May 2019 due to the arrest of the mill owner. Jianlong Industrial plans to expand the annual steel capacity of this project from existing 3 million mt to 5 million mt in the future and achieve sales revenues of 50 billion yuan.
Chengde Shengfeng Iron & Steel shut down completely
Chengde Shengfeng Iron & Steel announced on September 23 that it would shut down all furnaces on September 26, halt all production systems on September 30 and terminate labour contracts with all employees from October 1.
The mill has two 630 m³ blast furnaces and two 50 mt converters, with iron smelting capacity of 1.48 million mt and steel smelting capacity of 1.52 million mt. It has transferred all of its capacity to Guangxi Shenglong Metallurgy and Guangdong Jinshenglan Metallurgical Technology.
Tangshan intensified output controls on steel mills
On top of the Air Quality Assurance Programme August-September, Tangshan has required steel mills across many regions to restrict sinter production from 20:00 CST, September 18. The output controls are greater than before and the implementations are also stricter. SMM learned that most mills have halted or cut production in compliance with requirements and some put blast furnaces under maintenance in advance.
It is unclear when the restrictions will be lifted. Output controls are unlikely to be loosened in the short term as the winter heating season is drawing near. Some steel mills have gradually increased blast furnace maintenance and lowered output of finished steel due to concerns over the steel market.
Pig iron output in Tangshan likely to fall 32.8%
Tangshan has ordered 11 steel mills that are located within 25 kilometres from the city centre to reduce emissions by lowering the efficiency of blast furnaces at night hours and to cut pollutant emissions from sinter machines, lime kilns and steel smelting and rolling. These mills must also reduce vehicle exhaust pollution by controlling transport vehicles. On-site inspectors will be sent to see whether mills are conforming to the requirements. These measures could reduce pig iron output by 32.8%, waste gas emissions by 24.8%, particles emissions by 25.2%, SO2 emissions by 35.3% and nitrogen oxides emissions by 35.5%.
Operating rates of blast furnaces across Chinese steelmakers rebounded to 88.5%, EAF mills operating rates at 79.44%
Operating rates of blast furnaces across Chinese steel mills rebounded 0.2 percentage point from the prior week to 88.5% in the fourth week of September, as some steel mills recovered from maintenance, breaking a four-week losing streak. Operating rates across independent EAF steel mills in China stood at 79.44% as of September 23, up 1.2 percentage points from a week ago amid recovery from maintenance. Production and profits at mills remained stable amid lower prices of steel and steel scrap.
Ferrous metals trading officially on SHFE, trades totalled 13 million mt on first trading day
Notices of steel products guide prices were issued by SHFE on September 21. The guide prices were set for rebar, wire rod, HRC coil and stainless steel. The quotation came into effect on September 22. The trading of these four kinds of ferrous metals totalled 54 orders, 85 warrants, 13 million mt and 81 million yuan on the first trading day (September 22).
Amendments in China’s property market, maximum provident fund home loan limit in lowered
The Finance and Banking Bureau of Chengdu is to investigate a number of housing projects that have unsatisfactory sales. On the other hand, the maximum provident fund limit of home loans for first time home owners in Dongguan has lowered by 300,000 yuan, while over at Changchun, the down payment of the first house is to be no less than 30% and 40% for the second unit.
Steelmakers in Shaanxi, Shanxi, Gansu and Sichuan decided to cut construction steel output by 32,000 mt per day
Steelmakers in Shaanxi, Shanxi, Gansu and Sichuan held a summit in Shaanxi Xi’an on September 23, reaching an agreement on output cuts. Smelters in the four provinces agreed to reduce the supply of construction steel by about 32,000 mt per day through shutting down blast furnaces, reducing the proportion of scrap steel and bringing forward maintenance, a move aimed to ease supply pressure and maintain market discipline.
Other pointers mentioned in the summit include strengthening of product transformation, establishing inventory warning levels in local markets, regional sales meetings on weekly basis prices. Some steel mills have already agreed on maintenance and production cuts.
Chengde Shengfeng Steel to shut on October 1
Chengde Shengfeng Iron and Steel has issued an announcement on the company’s closure on September 23. All production will shut down on September 30 and the employees will be laid off on October 1, 2020.
Chengde Shengfeng, a private joint-stock company that integrated sintering, ironmaking, steelmaking and steel rolling, was founded in 2003. It had two 630m³ blast furnaces and two 50-mt converters, with ironmaking capacity of 1.48 million mt and steelmaking capacity of 1.52 million mt. The mill has since been taken over by Guangxi Shenglong Metallurgy and Guangdong Jinshenglan Metallurgical Technology.
First ironmaking plant of Jiangsu Xugang to be demolished and auctioned
The first ironmaking plant of Jiangsu Xugang is to be demolished and auctioned, with 1.3 million mt of iron-making capacity. It is understood that Xugang Group has triggered the demolishing plans of its blast furnace in June 2020. The bidding of the project is currently ongong.
Price limitation of iron ore futures contracts will be adjusted to 11% from September 29
Price limitation of iron ore futures contracts is adjusted to 11% from September 29, according to DCE. The margin levels for hedging and speculative trading will be adjusted to 11% and 12% respectively.
Updated maintenance at Chinese steel mills