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Steel News Roundup (Nov 8)

iconNov 8, 2021 11:08
This is a roundup of news in the steel industry for last week.

SHANGHAI, Nov 8 (SMM) - This is a roundup of news in the steel industry for last week.

The Ministry of Ecology and Environment officially issued the  Comprehensive Treatment Plan for Air Pollution in Autumn and Winter 2021-2022

On October 30, the Ministry of Ecology and Environment formally issued the Comprehensive Treatment Plan for Air Pollution in Autumn and Winter 2021-2022. Specifically, the Plan set out 10 key tasks and measures, including resolutely curbing the blind development of energy and pollution-intensive projects; implementing the output cut requirements of the iron and steel industry to reduce production; actively and steadily implementing the management of non-industrial oriented coal; comprehensive renovation of boilers and furnaces; identifying and resolving problems related to volatile organic compounds; accelerating the pollution control of diesel trucks; promoting the railway and waterway transportation of bulk cargo instead of road transportation; strengthening the prohibition of straw burning; strengthening the comprehensive management and control of dust; and effectively responding to heavy pollution weather. In order to ensure that these measures are implemented accordingly, it will enhance its leadership, increase policy support, improve the monitoring and control system, as well as strengthen supervision and assistance.

National Development and Reform Commission: Coal prices are expected to return to normal level at an accelerated pace

With the gradual improvement of the supply and demand situation, the level of coal storage in power plants has rapidly increased nationwide. The National Development and Reform Commission stated that the country's coal supply and demand situation has improved significantly, and coal production has also increased greatly. Calculated based on the recent coal supply, the power plant's coal storage is expected to exceed 110 million mt within 3 days, and the available days will reach 20 days, which will lay a solid foundation for ensuring the safe supply of electricity and the warmth of the people throughout the winter.

According to market monitoring, coal production across the country has increased significantly recently, and the coal inventory at ports in north China and national integrated power plants have increased rapidly. As such, the coal supply and demand have continued to improve, and coal futures and spot market prices have all declined significantly. The coal prices are expected to return to normal level at an accelerated pace amid the continuously improving supply and demand. Many coal companies in Inner Mongolia took the initiative to lower the prices at coal pithead to less than 1,000 yuan/mt.

After Inner Mongolia Yitai Group, Mengtai Group, Huineng Group and Xinglong Group took the initiative to lower the coal prices at pithead, state-owned enterprises such as National Energy Group and China Coal Group also followed suit. In addition, at a recent meeting held by the China Coal Transportation and Marketing Association, more than 10 major coal companies across the country vowed to follow the policy guidance and took the initiative to lower the prices of 5,500 kcal thermal coal at pithead in main producing areas to below 1,000 yuan/mt. According to market monitoring, since late October, coal prices at pithead and ports across the country have fallen sharply. With the increases in coal production, the supply and demand situation in the coal market will improve further.

Shanxi, Inner Mongolia, and Shaanxi severely crack down on illegal coal storage sites

In accordance with the deployment of the National Development and Reform Commission and other departments to close and rectify coal storage sites in coal production areas, Shanxi, Inner Mongolia, and Shaanxi immediately launched special rectification actions, and conducted a comprehensive survey of coal sites in their jurisdictions through the establishment of whistle-blower telephones, on-site investigations and inspections, etc. to strengthen supervision and rectification by classification. It will resolutely close coal storage sites that have not been approved and have not gone through the procedures for land use, environmental protection or safety verification, and severely crack down on illegal profit-making behaviours such as hoarding in illegal coal storage sites and driving up coal prices, and effectively safeguard coal operations and market order.

National Energy Group's coal output hits a record high

In accordance with the overall deployment of the national energy supply guarantee scheme, the National Energy Group, on the premise of ensuring safe production, is actively increasing coal production and supply. The coal production units affiliated to National Energy Group will effectively increase nuclear capacity and strive to exceed the monthly supply target through scientific organization and in-depth exploration of production potential. In October 2021, the National Energy Group’s total coal output reached 50.64 million mt, an increase of 4.21 million mt or 9.1% year-on-year. It is the first time that the Group’s monthly output exceeds 50 million mt. In the first 3 days of November, the average daily output increased by 70,000 mt from the previous month. As of November 3, the daily output reached 1.771 million mt, which was a new record high, making a positive contribution to the stable supply in the domestic coal market.

Coal inventory in Qinhuangdao Port field exceeded 5.1 million mt

On November 3, the coal inventory in Qinhuangdao Port field exceeded 5.1 million mt, higher than the level of the same period last year and reaching the highest level this year. With the continuous increase in coal production, the inventory at Qinhuangdao port field has steadily increased, especially after the completion of maintenance across Daqin railway at the end of October. The volume of thermal coal transported by railways hit a record high, and the port field inventory has increased significantly.


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