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Environmental protection and strong winds hit the steel and chemical industries again

Time: 2019-04-25

Environmental protection and strong winds, such as production restrictions during the heating season, have hit steel, chemical, cement, electrolytic aluminum and other industries again. The industry believes that the steel market will be another turmoil at the end of the year, and prices may continue to push up. Staggered production of cement may lead to negative growth in output in 2017, while the chemical industry is showing a polarization trend. There are a large number of scattered small chemical plants and small product enterprises, which will be the focus of environmental protection supervision. The elimination of these enterprises will be eliminated. In the long run, it is good for the entire industry.

Since the 18th National Congress of the Communist Party of China, the reform of the ecological civilization system has been placed in a prominent position in the comprehensive deepening of reforms. In September 2015, the Central Committee of the Communist Party of China and the State Council issued the "Overall Plan for Ecological Civilization System Reform", and the design of the top-level system in the form of "1+N" began. Since then, the previous central deep reorganization meetings have deliberated and passed a series of supporting policy documents related to the reform of ecological civilization. Since the beginning of this year, environmental protection related policies such as the "Beijing-Tianjin-Hebei and Surrounding Area Work Plan for Air Pollution Prevention and Control in 2017" have been introduced intensively. At the same time, the central environmental supervision has achieved full coverage in 31 provinces, autonomous regions and municipalities, and has promoted the resolution of a large number of outstanding environmental problems .

Below this, the place also moved. Hebei Province, a major iron and steel province, proposed that Baoding, Langfang, and Zhangjiakou will create "steel-free cities", Zhangjiakou will basically achieve "mine-free cities", and Zhangjiakou, Langfang, Baoding, and Hengshui will strive to achieve "coking-free cities." "Multiple environmental protection policies are superimposed, and there are very few steel production enterprises left." Jinlianchuang Metal Industry Editor-in-Chief Yi Yi introduced to the reporter of "Economic Information Daily".

However, the strong wind of environmental protection is still behind. According to the "Beijing-Tianjin-Hebei and Surrounding Area Air Pollution Prevention and Control Work Plan in 2017", the heating season of "2+26" urban industrial enterprises will have to shift production. The cement and foundry industries have all-out staggered production. Except for those who undertake the tasks of people’s livelihood, all staggered production during the heating season. From September 15th, the Ministry of Environmental Protection has launched atmospheric inspections on Beijing-Tianjin-Hebei and its surrounding areas in autumn and winter. This inspection is aimed at companies and governments participating in the "2+26" urban air pollution control in autumn and winter.

Yiyi believes that the steel market will be another turmoil at the end of the year, and prices may continue to push up. Taking the price of rebar as an example, there will still be 200-300 yuan/ton upward space in the later period. But chase the rise with caution.

Haitong Securities analyst Jiang Chao said that the output of 28 cities in 2016 accounted for one-fifth of the country's output, while the national cement output in the first July of 2017 only increased by 0.3% year-on-year, so peak production may lead to negative growth in 2017.

From the perspective of the chemical industry, Wang Zhenxian, editor-in-chief of the energy and chemical industry of Jinlianchuang, said that my country's chemical companies are currently polarizing. The production of major bulk chemicals is concentrated in the hands of large private enterprises such as three barrels of oil and local refineries. The supporting environmental protection measures for these enterprises are generally relatively complete. Due to the large impact on the local economy and society, the impact of environmental protection supervision is limited. On the other hand, there are a large number of scattered small chemical factories and small product enterprises, and there is a long-term lack of supervision. This part of the enterprises will be the focus of environmental protection supervision. Environmental supervision has been positive for chemical companies for a long time, and the policy threshold can eliminate some relatively inefficient small companies.

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