Steel News Roundup (Nov 22)

SHANGHAI, Nov 22 (SMM) - This is a roundup of news in the steel industry for last week.

The heating season in north China has officially begun, and the whole social coal inventory has steadily rebounded

Starting from November 16, the north China has been in the heating season, which also means that the annual peak period for coal storage and consumption in winter has come. It has been learned from the coal market that with the implementation of measures to increase production and ensure supply, the coal inventory of end users in the whole society is steadily increasing. Data shows that as the coal market supply has increased significantly, coal prices have gradually fallen. Since November, the prices of 5,500 kcal thermal coal at pithead in Shanxi, Shaanxi, and Inner Mongolia have fallen below 900 yuan/mt.

National Energy Group undertakes an additional 17.75 million mt of supply guarantee task

The National Energy Group is China's largest coal producer, with coal production and sales accounting for approximately 17% of the country's total. With the production already at full capacity, the company undertakes an additional 17.75 million mt of supply guarantee task. Coal companies in Shanxi, Shaanxi, and Inner Mongolia are the country's main coal producing areas. In recent days, in accordance with the requirements of the National Development and Reform Commission and other departments, the coal production capacity of these enterprises has been further released.

Ma Steel invested 8.46 billion yuan for a new project concerning 3.2 million mt of special steel

Recently, Maanshan Iron & Steel Co., Ltd. issued an announcement that the board of directors approved the new special steel project. The project will eliminate four 60 mt converters of the company and two 40 mt electric arc furnaces of Baosteel (with a total crude steel production capacity of 4 million mt/year), and will replace them with two 150 mt converters (the total crude steel production capacity is 3.2 million mt/year). Investment control target: construction investment of 8,457,110,000 yuan (excluding tax). Timeline: The first phase of the project includes a new 150 mt converter, two continuous casters (round billet, small billet), a new high-quality wire rod and large coil production line, which is scheduled to be put into operation by June 2023; the second phase of the project includes a new 150 mt converter, 1 bloom continuous caster, 1 medium rod rolling line and supporting finishing line, which are scheduled to be put into operation by the end of 2024.

Handan City issues the production control plan for key industries from November 18 to December 31

In accordance with requirements, all steel companies shall ensure that they complete the first-stage crude steel output reduction target. At the same time, A level iron and steel enterprises shall reduce their emissions based on actual conditions; B and B- level iron and steel enterprises shall stop more than 30% (inclusive) of blast furnaces capacity (calculated by the number of blast furnaces); C level iron and steel enterprises stop more than 50% (inclusive) of blast furnaces capacity (calculated by the number of blast furnaces); D level steel enterprise shall shut down blast furnaces completely.

The "14th Five-Year" Development Plan for the Iron and Steel Industry in Shandong

During the "14th Five-Year Plan" period, Shandong will focus on building a steel industry ecology, promote the optimisation of the steel industry, promote the deep integration of the steel industry and the equipment manufacturing industry, and double the output value of steel and finished products to trillion yuan level. The province encourages the deep processing of steel, the establishment of  manufacturing parks, the extension of the industrial chain, and the creation of industrial clusters. It is encouraged to further develop special steel, steel for ocean engineering, steel for rail transit, steel for white goods, steel for construction machinery, steel for petroleum and petrochemical, etc., to drive the upgrading of bearings, gears, molds, stainless steel, offshore engineering equipment, and engineering machinery equipment, rail transit equipment, etc. in order to further improve the industrial chain, value chain and innovation chain, and provide a demonstration for the transformation and upgrading of the steel industry in the province and even the whole country.