The reduction of crude steel continued to boost the high-quality development of the steel industry
According to the China Securities Journal, sources in the industry have learned that a notice has been issued to local authorities to check the assessment base of the 2022 crude steel production reduction, requiring local authorities to verify the feedback base.
On April 19, the state said that in 2021, under the joint efforts of all parties concerned, the national crude steel output decreased by nearly 30 million tons year on year, and the reduction task of crude steel output was fully completed. In order to ensure the continuity and stability of the policy and consolidate the results of the reduction of crude steel output, the four departments will continue to carry out the reduction of crude steel output nationwide in 2022, guide steel enterprises to abandon the extensive development mode of winning by quantity and promote the high-quality development of the steel industry.
In the process of reducing crude steel output, it will adhere to “one general principle and highlight two key points”, it said. A general principle is to firmly grasp the word pledge, seek improvement in stability overall tone, in keeping the steel industry supply side policy continuity and stability of the structural reform at the same time, adhere to market-oriented, government by law principle, give play to the role of market mechanism, stimulate the enterprise enthusiasm, strict enforcement of environmental protection, energy consumption, security, land and other relevant laws and regulations. Highlight two key is to stick to distinguish situation, maintain pressure, avoid “one size fits all”, in the key areas reduce and the surrounding areas of the beijing-tianjin-hebei region, Yangtze river delta region of nutrient-laden plains and other key regional crude steel production for the control of air pollution, reduce in regard to the key object of poor environmental performance, high energy consumption, crude steel production technology and equipment level is relatively backward, The goal is to ensure the realization of 2022 national crude steel output year-on-year decline.
According to the data, the national crude steel production in the first quarter of 2022 was 243.376 million tons, down 10.5% from the same period last year; Pig iron production in China was 200,905 million tons, down 11% from the same period last year. National steel production was 31.026 million tons, down 5.9 percent from the same period last year. As a result of 2021 crude steel production more than less, the same period last year, a higher base, the first quarter of steel production fell significantly.
By region, the key areas of the Beijing-Tianjin-Hebei region and its surrounding areas, the Yangtze River Delta region, the fenhe River Plain area of the provinces crude steel output has declined to varying degrees, including Beijing and Tianjin in the Winter Olympics and the two sessions under production control, crude steel output declined significantly, showing a good start in the New Year to reduce crude steel output.
At present, the industry generally agrees that reasonable reduction of crude steel output is beneficial to the high quality development of steel industry. When the current terminal demand is less than expected and the real estate construction industry is under greater downward pressure, the reduction of crude steel production is conducive to easing the supply pressure. In addition, the reduction of crude steel production will restrain the demand for raw materials, which is conducive to reducing the price speculation, making the raw material cost return to rational, and improving the profitability of steel enterprises.
Post time: May-16-2022