The hottest steel enterprises began a new round of

2022-09-22
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Steel enterprises began a new round of furnace shutdown and production reduction

in order to implement the development strategy of efficient and green plastic granulator, iron and steel enterprises, which have been unwilling to reduce production, finally made up their minds in the face of no minimum but lower steel prices. It was learned yesterday that due to the severe steel market situation, a number of steel enterprises announced to shut down or reduce production. So far, the cycle of "falling prices, losses and production reduction" that has occurred frequently in the past two years seems to have become a dilemma for steel enterprises

among the steel enterprises that reduced production, Liuzhou Iron and steel stopped a 2000 cubic meter blast furnace for about days, affecting the output of about 200000 tons. Shagang is expected to start the closure and repair of a 2500 cubic meter blast furnace for about 20 days in early August, affecting the production of molten iron of about 150000-180000 tortuous tons. In addition, a number of iron and steel enterprises, including Wu'an Xinjin and Puyang, also have blast furnace production reduction plans to varying degrees

analysts pointed out that the decline in the domestic construction steel market increased and accelerated in July. At present, the steel price has fallen to a new low in the past two years in the continuous decline channel. In addition, July and August is the traditional off-season of the domestic steel market. Coupled with the continuous evolution of the European debt crisis, the global economy is not optimistic, and the growth rate of domestic macroeconomic data has also declined. Previously, the release of steel mill capacity has been maintained at a high level, which has exacerbated the current contradiction between supply and demand, and the pessimism has enveloped the entire steel industry

"many people don't understand why iron and steel enterprises have been losing money and producing more. In fact, the reason is very simple, that is, everyone doesn't want to take the initiative to reduce production, make market space for other enterprises and lose customers," said a steel plant executive who didn't want to be named. "In addition, the steel plant dare not stop the blast furnace rashly, taking into account tax, employment, loans, local government support and other factors." The short-sighted behavior of preferring losses to not reduce production has led to serious overcapacity in the steel industry. Even under the market downturn, the daily output of crude steel in China was still as high as 2.007 million tons in June this year, which was at a high level as interior parts in. It can be said that this forced reduction in production is due to the steel enterprises themselves driving themselves to the edge of the cliff

when analyzing the future trend, analysts believe that the current steel market is facing multiple pressures, such as sluggish demand for downstream steel, high domestic steel production, and poor export situation. It is expected that the domestic construction steel market will be difficult to get out of the dilemma in August, and the market will still be in a downward trend

in fact, many people in the iron and steel industry lament that "steel prices are not afraid of falling, and the most afraid thing is not to see the bottom". In view of the general confusion in the industry about whether the steel price will bottom in August, analysts pointed out that the next change in steel price depends on the strength of this round of production reduction by steel mills and whether it can reduce the supply pressure on the market

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