On September 6, Shanghai Rebar ** closed at a close to a daily limit, creating the largest increase in a single day for more than a year.
Affected by relevant departments to increase energy-saving and emission reduction efforts, the impact of forced power cuts and restrictions on power plants in Hebei's Wu’an region was lifted by several days at the end of the domestic steel market. On September 6th, Shanghai’s steel rebars were also significantly increased. Make up. Analysts believe that the implementation of energy-saving emission reduction measures far exceed market expectations, will form a strong support for steel prices.
On September 4, the steel company in Wu'an City, Hebei Province, received a notice that the blast furnace and rolling line of 18 steel mills in the area were required to be shut down before zero on the 5th. The time limit for shutting down was tentatively set to 20 days to 1 month. In addition to the steel mills, some local coking companies and iron ore mining and mining enterprises were also required to stop production. As Wu'an is the most concentrated steel and steel town in Tangshan outside of China, the steel production capacity at the end of 2009 was about 20 million tons. The news that the steel mills stopped production in large areas stimulated domestic steel prices to soar in a short period of time.
Over the weekend, a group of steel mills such as Xigang and Laiwu Steel Yongfeng raised their ex-factory prices. On September 6, Shanghai Rebar ** also closed at a close to a daily limit, rising by 210 yuan or 4.8% for the whole day, creating more than a year of varieties. The biggest increase in one day. The quantity and energy indicators were rapidly enlarged. The main Rb1101 contract increased 134,000 contracts daily, and sold 2.91 million lots, more than double the previous trading day.
Zhejiang Merchants analyst Feng Xiao said that regardless of the implementation of energy-saving emission reduction measures, or the subsequent increase in steel prices have exceeded market expectations. “Because we have been saying that we must eliminate backward production capacity, we must implement punitive tariffs and other regulatory measures, but the domestic steel production is huge, the electricity price is less in the steel factory production costs, the market ignored. There was a lot of around August 30. The steel mills began to overhaul and the market did not pay attention, but now the specific measures for local government energy-saving and emission reduction have come down, and 20 million tons of production capacity has been directly shut down for nearly a month. This is contrary to many people's expectations, and the market has seen a recent soaring market. ."
Feng Xiao analysis believes that energy-saving emission reductions and power cuts will effectively reduce steel production, and excess production pressure will be relieved. Taking Zhejiang as an example, during the summer of July 1 to September 13, during the summer peak season, 1160 high-energy-consuming enterprises in eight categories stopped production for 15 days, which resulted in a drop in the output of a few mills by up to half. After the shutdown of steel mills in the Wu'an area, if Tangshan can follow up, steel prices will continue to rise.
Guotai Junan ** analyst Wei Bo said that the steel industry as a large traditional energy consumption, in this energy-saving emission reduction has been the focus of regulation, steel prices have also been affected. The first is to implement punitive electricity prices and increase environmental protection measures to increase the production costs of steel mills. Second, local governments directly limit or limit the production of steel mills, which will reduce the production and supply of steel plants. Both of them will impose steel prices on steel prices. Create upward momentum.
In fact, under the background of energy-saving and emission-reduction work entering the critical stage, Hebei, Shanxi, Zhejiang and other places have successively carried out remediation work on high energy-consuming steel enterprises. According to Jiangsu regulations, iron and steel enterprises can only produce 18 days a month and continue until the end of October. The increase in electricity prices for high-energy-consuming enterprises and the cancellation of the peak-valley electricity price policy are being implemented by steel companies including Shagang, Yonggang and Zhongtian. Electricity curtailment policy; except for the steel mills in Linfen, Shanxi Province, the rest of the steel mills basically stopped production from September 3; Zhejiang Ningbo Iron and Steel has a 2,500 cubic meter ironmaking blast furnace that was also shut down in early September.
The industry generally believes that at present, the understanding of energy saving and emission reduction by local government and central government is basically the same.
It is understood that in the “Eleventh Five-Year Planâ€, China’s energy-saving emission reduction target is to reduce the energy consumption per unit of GDP by 20%, and the national cumulative unit GDP energy consumption in the first four years fell by 15.6%. In the first half of this year, the energy consumption per unit of GDP did not decrease. It increased by 0.09%, which means that the task of energy-saving and emission reduction in the second half of the year will be very difficult.