Steel News Roundup (Dec 27)

SHANGHAI, Dec 27 (SMM) - This is a roundup of news in the steel industry for last week.

The “carbon peaking and carbon neutrality” path next year is finalised, and multiple departments are preparing the development plans

From the promulgation of the "1+N" top-level design in 2021, to the tone set at the latest central economic work conference, and to the recent release of development plans by various departments, the path of "carbon peaking and carbon neutrality” (dual carbon) work in 2022 has become clearer. In terms of the signals released, in the new year, more emphasis will be placed on promoting the optimal combination of coal and new energy. While actively promoting the development of wind power, photovoltaics and other renewable energy and diversified energy storage industries, the clean and efficient use of as well as the supply of coal and other traditional energy will be ensured. At the same time, the energy consumption of raw materials in the new energy sector will not included in the total energy consumption control, and the “dual control” of energy consumption will be transformed to the “dual control” of total carbon emissions and intensity, which will have a profound impact on local governments, local economies and enterprises, and multi-industry green transformation will be accelerated. Industry insiders suggest that the relevant supporting rules for the “dual control” of carbon emissions should be improved as soon as possible.

Ministry of Industry and Information Technology: Crude steel output is reduced by more than 20 million mt this year & development targets in 2022

On December 20, the National Industry and Information Technology Working Conference was held in Beijing via video. The meeting pointed out that since the beginning of this year, under the strong leadership of the Party Central Committee, the whole system has firmly implemented the tasks of "six stability" and "six guarantees", the strategy of making a strong country, and successfully completed the main goals and tasks of the year, marking a good start to the "14th Five-Year Plan". The industrial structure was further optimised and upgraded. The output of crude steel in the whole year was reduced by more than 20 million mt. From January to November, the high-tech manufacturing industry and equipment manufacturing industry increased by 19% and 13.7% year-on-year respectively. In the first 10 months, the energy consumption per unit value added of the industrial enterprises above designated size decreased by 5.4% year-on-year. “5G+Industrial Internet" drew 20 typical application scenarios in 10 key industries. Xiao Yaqing, Minister of MIIT, stated at the meeting that in 2022, stable industrial growth must be placed in the most important position. And it is also key to promote industry chain development, technological breakthroughs, digital transformation, green and low-carbon development, and increase the support for small and medium-sized enterprises. The communication service supply capacity as well as the stable operation and quality upgrading of the industrial economy will also be promoted. The Ministry will maintain the basic stability of the proportion of the manufacturing industry, and enhance the core competitiveness of the manufacturing industry.

Handan: Crude steel output in the first quarter of 2022 will be reduced by 30% compared with the same period in 2021

Recently, Handan City formally issued a comprehensive plan for air pollution in the autumn and winter of 2021-2022. For the steel industry, the plan proposed that in accordance with the principle of "operational, verifiable, and statistical”, it will work out a implementation plan to ensure that the city's crude steel output reduction target task is completed as required. From January 1st to March 15th, 2022, in principle, the ratio of staggered production of iron and steel enterprises shall not be less than 30% of the crude steel output of the same period of the previous year.

China Association of Automobile Manufacturers: China's total vehicle sales in 2022 to 27.5 million units, a year-on-year increase of 5.4%

According to the forecast of the China Association of Automobile Manufacturers, China's total automobile sales in 2021 will be 26.1 million units, a year-on-year increase of 3.1%. Among them, passenger vehicle sales were 21.3 million units, a year-on-year increase of 5.6%; commercial vehicle sales were 4.8 million units, a year-on-year decrease of 6.4%; new energy vehicle sales were 3.4 million units, a year-on-year increase of 1.5 times. China’s total automobile sales in 2022 will be 27.5 million units, a year-on-year increase of 5.4%, of which passenger car sales will be 23 million units, a year-on-year increase of 8%; commercial vehicle sales will be 4.5 million units, a year-on-year decrease of 6%; new energy vehicle sales will be 5 million units, a year-on-year increase of 47%.

General Administration of Customs: China exported 220,000 units of automobiles in November, up 69% year-on-year

On December 18, the General Administration of Customs released data on China's import and export key commodities in November. In November, 220,000 vehicles (including chassis) were exported, a year-on-year increase of 69%; from January to November, a total of 1.93 million vehicles were exported, a cumulative year-on-year increase of 101.9%. Among them, 174,000 units of passenger vehicles were exported in November, a year-on-year increase of 74.8%; from January to November, a total of 1.492 million passenger vehicles were exported, a cumulative year-on-year increase of 109.7%.