Steel News Roundup (Nov 1)

SHANGHAI, Nov 1 (SMM) - This is a roundup of news in the steel industry for last week.

The State Council issued a carbon peak action plan by 2030, and the proportion of non-fossil energy consumption in 2030 will reach about 25%.

The State Council issued an action plan for carbon peak by 2030. The Plan mentioned that by 2025, the proportion of non-fossil energy consumption will reach about 20%, the energy consumption per unit of GDP will be reduced by 13.5% compared to 2020, and the carbon dioxide emission per unit of GDP will be reduced by 18% compared with that in 2020. By 2030, the proportion of non-fossil energy consumption will reach about 25%, and carbon dioxide emissions per unit of GDP will be reduced by more than 65% compared with 2005 in order to successfully achieve the goal of carbon peak by 2030.

The National Development and Reform Commission sent several investigation teams to carry out a special field survey of coal prices and costs

Recently, the Price Department of the National Development and Reform Commission carried out field surveys on coal costs with coal production and circulation enterprises and. It also worked together with the Price Cost Investigation Centre and formed a number of investigation teams to go to relevant provinces to conduct on-site investigations on key coal production and circulation enterprises in order to determine the reasonable range of coal prices and collect solid evidences to prevent coal prices from making exorbitant profits. The National Development and Reform Commission will work with relevant departments to severely crack down on illegal activities such as price bidding, hoarding, collusion to manipulate market prices, and fabricating and distributing false price increase information.

The National Development and Reform Commission held a special meeting to study specific measures to regulate coal prices

On the morning of October 27, the Pricing Department of the National Development and Reform Commission convened a meeting of the China Coal Industry Association and some key coal companies to study specific and measures to stop coal companies from making exorbitant profits and ensure long-term stability of coal prices. The meeting listened to the China Coal Industry Association and some key coal production companies on the current coal market and prices, and discussed the relevant measures to regulate coal prices, including the regulation method, price level, implementation time, and safeguard measures, combined with the coal production cost survey organized in the previous period. The National Development and Reform Commission will pay close attention to changes in the coal market and prices and further study and improve price regulation measures based on the pinions and suggestions of relevant parties.

NDRC Energy Institute Expert: Coal prices have entered a downward trajectory

The National Development and Reform Commission forwarded an article in China Reform News that coal prices have entered a downward trajectory. Xiao Xinjian, deputy director of the Energy Economics and Development Strategy Research Centre of the Energy Research Institute of the National Development and Reform Commission, said, “Of course it takes around 2 - 3 three months for the coal prices to fall. From the perspective of supply and demand fundamentals, the coal prices have already entered the downward trajectory. In the first three quarters, China’s total social coal inventory decreased by more than 100 million mt. In the fourth quarter, under the premise of ensuring heating supply, the power generation companies still have restock demand. With the solid implementation of the policy, the restock demand will be fulfilled by the end of March next year. "

SASAC: Relevant industry associations shall strengthen policy research to stabilise the coal market

Recently, the State-owned Assets Supervision and Administration Commission of the People's Republic of China convened a special meeting of the industry associations to help ensure energy and power supply in this winter and next spring. The meeting pointed out that the party organizations of relevant industry associations should further improve their political positioning, give full play to their advantages, and make more contributions to ensuring supply. It is necessary to strengthen policy research, listen to industrial voices through multiple channels, and timely resolve the difficulties and problems of enterprises in the process of implementing policies. It is also key to enhance the communication with industry enterprises and encourage the them to tap the potential to increase production. The associations shall also give play to the self-discipline of the industry, and stabilise the coal market.

The National Development and Reform Commission held a meeting to study the criteria for determining coal companies’ driving up prices and making exorbitant profits

On October 27, the Price Department of the National Development and Reform Commission held several meetings by inviting economic and legal experts, as well as some coal and power industry associations and companies, to study how to define the criteria for coal companies’  driving up prices and making exorbitant profits. The meeting listened to the reports of coal production and operation by relevant industry associations and companies in recent years, and discussed the reasonable price range and profit margin that should be maintained to promote the coordinated and sustainable development of the coal industry and downstream power industries. The meeting also focused on how to identify the coal companies that drive up prices and make exorbitant profits.

China Iron and Steel Association: It is necessary to track market supply and demand, price changes and abnormal activities in a timely manner to facilitate the smooth operation of the steel market

The Iron and Steel Association organized the 2021 Iron and Steel Industry Information Annual Conference a few days ago. Qu Xiuli, vice president and secretary-general of the China Iron and Steel Association, proposed that it is necessary to maintain the smooth operation of the industry, timely track market supply and demand, price changes and abnormalities, strengthen market research and analysis of price fluctuations caused by non-market factors, make policy recommendations to relevant departments when necessary, actively respond to social concerns, and promote the smooth operation of the steel market.