The “limited electricity wind†came ahead of time, which made the steel factory, which is a large industrial power user, frown, because with the arrival of the peak electricity consumption and the expansion of the power gap, their normal production may be affected.
“I heard that the Ningbo Municipal Government is already preparing for the peak of electricity consumption from June to August. For mid-June to mid-July, high-energy-consuming enterprises will be required to stop production and repair for one month. Once such a plan is implemented, Ningbo Iron and Steel may Losing at least 200 million yuan." Chen Ping, Minister of Energy and Environmental Protection of Ningbo Iron and Steel Co., Ltd., in an interview with China Business News, expressed concern about power cuts this year.
In the third quarter of last year, the Zhejiang provincial government “reviewed†a number of companies including Ningbo Iron and Steel, demanding that production be shut down for four months in September, October, November and December, when the losses caused to Ningbo Iron and Steel reached 400 million. yuan.
"being" reduced production
It is understood that following the occurrence of power-limiting storms in central China such as Hunan and Hubei, recent measures have been introduced in many provinces across the country. For example, in some areas of Zhejiang Province, the power-saving measures of “opening three stops and one stop†and “opening five stops and two stops†have been implemented; Jiangxi Power Grid has begun to implement orderly power consumption, strictly implementing peak avoidance for high-energy, low-output power users. At the end of last month, Jiangsu Power Company discussed the issue of power conservation and supply protection with Jiangsu's top ten steel companies.
Wang Hong, general manager of Jiangxi Xinyu Iron and Steel Co., Ltd. told reporters that the company has received a notice from the government to limit the power cuts, requiring steel companies to reduce the electricity load by 10%. Due to this, Xinyu Steel Steel ( 4951 , 58.00 , 1.19) % ) Production is reduced by about 5%.
Chen Ping also revealed that due to the impact of power cuts, the output of Ningbo Iron and Steel has also decreased by about 5%. However, the current power cuts are not very large, but only for enterprises during the peak hours, Ningbo Iron and Steel Adjust the production structure, such as reducing the load during peak hours, lowering the speed, and driving the horsepower at night during the low peak period to increase production capacity.
An internal high-level executive of Guangzhou Iron and Steel said to reporters yesterday that the current situation of power shortage in Guangzhou is also severe. Enterprises have been asked to make several sets of alternatives during the peak period of power consumption, such as peak production.
Zhou Xuedong, deputy secretary of the Ningbo Iron and Steel Party Committee, also predicted to reporters that the impact of power cuts in the future may be intensified. "In the long run, power cuts will become an inevitable reality with the arrival of power peaks, but it is still unknown what power cuts will limit."
Inconsistent
It is understood that some steel enterprises such as Pinggang, Chongqing Iron and Steel and Water Steel, which are currently located in the western region, also indicated that the steel rolling line was affected. However, due to the double push of market demand and peak season effect, at the moment when most steel mills are producing at full capacity, the daily crude steel output in the first quarter has reached a record high, and most steel mills have operating rates above 90%. I don't want to cut production.
The above-mentioned analysis of the high-rises of Guangzhou Iron and Steel, the impact of power shortage on steel mills, should be divided into the situation. Some steel mills such as Baosteel, Shagang, and Guangzhou Iron and Steel Co., Ltd. use their own power plants to generate electricity for production. The impact may be slightly smaller. Some steel mills relying on purchased electricity, production capacity and profitability are strong. If the production is reduced, the impact will be relatively large. If the scale of power cuts increases, the huge amount of domestic steel supply will shrink, which may push up the price of steel.
Regarding the impact of power-limiting factors on steel enterprises, Ni Lan, an analyst at China Iron and Steel Research Center, pointed out that this power cut is likely to drive up the price of the steel market. Due to the obvious effect of eliminating power cuts last year, some people are not excluded this year. Pick up the goods in advance, or sell the stocks with low-cost resources, in case of high sales in the future, especially in the second half of the year, the demand for affordable housing is large, the market will be fast due to tight supply and the expected price increase mentality. In the case of rising, once the price rises faster, it is bound to be that the market has no market and has a rapid decline. Fluctuations in steel prices will also drive the raw material market, especially the price of iron ore, which will once again make steel production costs tend to be high.
For the impact on the future steel market, the latest analysis report of the domestic spot trading platform Xiben Shinkansen predicts that the short-term domestic power supply shortage will be difficult to alleviate, and the power cut may push domestic steel prices to continue to rise.
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