|
On October 3, Tangshan
announced the Enhanced Air Quality Assurance Program for Autumn
and
Winter 2020-2021
(hereinafter the Program), then Tangshan Industrial
Enterprises Daily Emission Reduction Measures for Autumn and Winter
2020-2021 (hereinafter Daily Emission Reduction Measure)
announced on October 10, is simultaneously abolished. The following
is a brief comparison and analysis.
I Time
The
effective period of the Program is 00:00 on November 1,
2020 to 24:00 on March 31, 2021 while the old version is 00:00 on
October 1 to 24:00 on March 31, 2021.
II Production Restriction Change
Table: A Comparison of Production Restriction
(In 10,000 tonnes)
|
Steel Mill |
the Program |
Daily Output Reduction (Hot Metal) |
Daily Emission Reduction Measure |
Daily Output Reduction (Hot Metal) |
|
Unchanged |
|
Shougang Qian’an Steel |
voluntary emission reduction |
- |
voluntary emission reduction |
- |
|
Shougang Jingtang |
voluntary emission reduction |
- |
voluntary emission reduction |
- |
|
Zongheng Steel |
reduce by 10% |
0.22 |
reduce by 10% |
0.22 |
|
Jianlong Steel |
stop production in required period |
0.3 |
stop production in required period |
0.3 |
|
Zhayi |
stop production in required period |
eliminated |
stop production in required period |
eliminated |
|
Yanshan |
2*450m3 BFs stop production |
0.3 |
2*450m3 BFs stop production |
0.3 |
|
Huaxi |
2*450m3 BFs stop production |
0.3 |
2*450m3 BFs stop production |
0.3 |
|
Tangsteel Stainless Steel Company |
2*450m3 BFs stop production |
0.3 |
2*450m3 BFs stop production |
0.3 |
|
Rongxin Steel |
1*450m3 BF stops production |
0.15 |
1*450m3 BF stops production |
0.15 |
|
Changed |
|
Ruifeng Steel |
1*630m3 BF stops production |
0.22 |
reduce by 20% |
0.34 |
|
Donghua (Inc Keiheng) |
1*630m3 BF stops production |
0.24 |
reduce by 20% |
0.32 |
|
Jing’an |
reduce by 10% |
0.11 |
reduce by 35% |
0.34 |
|
Tangsteel Stainless Steel Company |
1*550m3 BF stops production |
0.19 |
reduce by 45% (excluding 450m3 BF) |
0.18 |
|
Chunxing Special Steel |
reduce by 10% |
0.06 |
reduce by 35% |
0.21 |
|
Donghai Steel |
1*680m3 BF stops production from January 1-March
31, 2021 |
0.24 |
reduce by 10% |
0.12 |
|
Donghai Special Steel |
1*1080m3 BF stops production |
0.3 |
reduce by 20% |
0.47 |
|
Yanshan |
1*2560m3 BF stops production for 60 days |
0.6 |
reduce by 20% (excluding 450m3 BF) |
0.38 |
|
Xinda Steel |
1*580m3 BF stops production |
0.2 |
reduce by 20% |
0.28 |
|
Jiujiang Steel |
2*480m3 BFs stop production |
0.34 |
reduce by 20% |
0.44 |
|
Songting Steel |
1*1080m3 BF stops production for 70 days |
0.3 |
reduce by 20% |
0.2 |
|
Rongxin Steel |
1*480m3 BF stops production |
0.17 |
reduce by 45% (excluding 450m3 BF) |
0.35 |
|
Jinxi Steel |
2*550m3 BFs stop production |
0.38 |
reduce by 20% |
0.55 |
|
Ganglu |
1*650m3 BF stops production |
0.22 |
reduce by 10% |
0.17 |
|
Delong |
reduce by 10% |
0.07 |
reduce by 20% |
0.12 |
|
Tangsteel Medium and Heavy Plate |
1*1780m3 BF stops production from December
1-March 31 |
0.5 |
reduce by 35% |
0.49 |
|
Wenfeng |
not listed |
- |
reduce by 10% |
0.06 |
|
Guoyi Special Steel |
not listed |
- |
reduce by 15% |
0.15 |
|
Tianzhu Steel |
not listed |
- |
reduce by 15% |
0.15 |
|
Huaxi Steel |
not listed |
- |
reduce by 15% |
0.1 |
|
Jinma Industry |
not listed |
- |
reduce by 15% |
0.14 |
|
Tangyin Steel |
not listed |
eliminated |
stop production in required period |
eliminated |
|
Tangshan Xin Baotai Steel |
not listed |
- |
stop production in required period |
0.05 |
|
Rongcheng Special Steel |
not listed |
- |
stop production in required time period |
0.03 |
|
Total |
5.71 |
|
7.21 |
Statistically, excluding the de-capacity, daily reduction of hot metal
under the Program totaled 57,100 tons while the old version
announced on October 10 reached 72,100 tons.
III Actual Production Status
SteelHome has made a random survey on the production status of listed
steel mills on the Program.
|
|
Production Restriction on the Program |
Actual Production Status |
|
1 |
BF output reduces by 10% |
BF produces at a normal pace |
|
2 |
1*630m3 BF stop production |
1*1350m3 BF is planned to be regularly maintained |
|
3 |
2*550m3 BFs stop production |
1*1280m3
BF is in regular maintenance |
|
4 |
1*2560m3 BF stop production |
maintenance plan |
|
5 |
1*550m3 BF stop production |
haven’t so far |
|
6 |
voluntary production reduction |
BFs
produce at a normal pace |
According to SteelHome survey, steel mills listed on the Program
do not stop production as requested, yet are high probably to reduce
the output or stop production later.
IV Market Price Forecast
Blast furnace operating rate in Tangshan area will undoubtedly drop
in the fourth quarter, and the steel products output decreases.
As for the Program, the blast furnace that shall stop
production and the reduce output are specified to avoid the
confusion and negligence, then production restriction will be more
effective than abolished Daily Emission Reduction Measure.
Most of the steel mills listed on the Program concentrate on
producing strip. At present, the price difference between strip and
steel pipe reaches around 200 yuan/t, then the welded pipe enjoys
meagre profit subtracting transportation and manufacturing cost.
SteelHome predicts that strip price will increase amid fluctuation
in short term and the price difference between strip and steel pipe
is unlikely to be enlarged. |
