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6 Provinces And Cities, Some Enterprises Discontinued Production

Mar 28, 2018

The Ministry of Ecology and Environment has recently sent letters to 6 provinces and cities in Beijing, Tianjin and Hebei, and proposed to start the emergency plan of heavy pollution weather in time and strengthen the supervision and inspection.

Subsequently, Beijing, Tianjin and other areas of the release of heavy pollution weather warning, and require some enterprises to stop production. Industry insiders believe that the short-term impact of the emergency measures on steel supply is small, but the long-term still has a greater impact.

In the case of cement, environmental protection limited in the short term for price increases provided the conditions, but in the absence of solutions to overcapacity problems, cement prices will still fluctuate.

According to the Shanghai News reporter understands that the above-mentioned letter suggested that "2+26" city, the city that did not start the heavy pollution weather contingency plan, should be issued before 24 o'clock on March 24 to issue heavy pollution weather warning, decisive take emergency mitigation measures.

According to the document requirements, Beijing, Tianjin, Shandong, Shanxi, Hebei, Henan and other areas have issued heavy pollution weather warning, and cement, steel, coal-fired power plants and other industries included in the cut-off limits. Shandong Taian City, Rizhao, Binzhou and other cities have issued heavy pollution weather warning, mandatory pollution reduction measures, including cement grinding and other enterprises to stop production.

Henan started Ⅱ-level emergency response, according to the previous issue of "Henan province heavy Pollution weather contingency plan" requirements, Ⅱ-level emergency response to industrial mitigation measures, including cement grinding station all discontinued.

Since the beginning of last year, the national cement market prices have continued to rise, especially after entering the August market season, cement prices to maintain the same as in previous years, the regularity of the rapid rise in price increases than in previous years. Some industry analysts to the Shanghai News reporter said that the temporary production cut-off short-term to the cement industry has a certain impact, objectively for the price increase provided the conditions. But in the long run, cement prices should be matched with resource consumption and environmental protection.

Cement prices will remain volatile until there is a solution to the overcapacity problem. "Overall, this year, the impact of environmental protection, steel supply is still limited, which has a supporting effect on the stability of steel prices." "In the opinion of my steel network information director, Xu Xiangchun, temporary shutdowns occur in response to adverse weather conditions." such as Hebei province Wuan to improve the quality of the atmosphere, all blast furnace stew furnace since March 16 discontinued more than 10 days. Although short term production has little effect on the supply of steel market, in the long run, the cumulative effect of normalization will have a great impact on market supply.

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