Iron And Steel Limited Power Will Bear The Brunt Of &Nbsp; Shortage Of Production Capacity Or Rise Of Steel Price.

The "Power Limited wind" that has been blown up ahead of time has caught many steel companies unprepared. This is likely to happen further in the steel industry, which is at a high rate of opening. capacity Shortage Steel price It will receive more favorable support.

Reporters learned that, due to insufficient power supply this year, many provinces and cities began to carry on the high energy consuming industries represented by steel. Power limitation Limit production. Some provinces and municipalities require enterprises to strictly implement the production of staggering peak and reduce the commencement time; some areas also plan to impose high penalty electricity prices on enterprises without peak production.

As of now, Zhejiang, Jiangsu, Hebei, Jiangxi and other provinces and municipalities have issued documents or notices about power blackouts. Zhejiang province stipulates that "opening three stops one" and "opening five stops two" should be implemented in some areas, that is, the commencement time should be reduced. Jiangsu province also specifically interviewed ten steel enterprises in the province, demanding that electricity supply be limited. According to reports, the maximum electricity gap in summer in Jiangsu may reach more than 11 million kilowatts, with a shortfall of nearly 16%.

Due to the start time of power restriction, some steel enterprises still do not have specific production planning. However, some steel companies have already begun to be affected by power rationing.

The information provided by "my steel" net shows that Jiangxi Pinggang has begun to limit electricity in early April. At present, the blast furnaces of the steel plants are still operating normally, but the 5 rolling mills only have 16 hours rolling each day, which affects the output of about 120 thousand tons.

At the moment, steel prices are rising as a whole in the peak season of steel market demand. Therefore, the capacity utilization rate of steel plants has generally reached the upper limit to cope with the demand. But once the electricity restriction policy is rolled out, it will likely aggravate the contradiction between supply and demand, resulting in a partial shortage of steel capacity which has always been considered "surplus".

According to Sinosteel data, the crude steel output in China in the first quarter of this year has reached a record high of 1 million 979 thousand tons in early April after a record high domestic crude steel output. It is reported that the capacity utilization rate of steel plants has reached over 90% of full load. Once the electricity restriction policy is fully rolled out, it is likely that the already tight supply and demand will have a certain degree of capacity shortage. And steel prices will be stimulated to get more stable support.

"Power restriction is definitely good for steel prices. The recent shipment of traders is generally smooth, and the rainy season in the south is coming late, which is conducive to the construction of the site, and the demand is also sustainable. "My steel" Network Analyst Zhang Tieshan told this newspaper.

In fact, the futures and spot markets of steel have already reflected this optimistic expectation. Among them, thread futures have been rising for 5 consecutive days, especially in the recent three days of the stock market's overall decline. The upward trend of steel futures has highlighted the market's optimism about the power restriction effect.

Some market participants began to compare the power rationing with the storm of energy saving and emission reduction in early September last year to assess whether they would get out of the similar market.

However, "my steel" Network Analyst Jia Liangqun also told this newspaper interview that, because the macro-control policy has further tightening trend, the negative effects will eventually become apparent. "The growth rate of fixed asset investment may decline, thus affecting the demand for steel products."