Tangshan'S 19 Blast Furnace Has Been Extinguished By The Olympic Games.

Reporters yesterday learned from the domestic commodity information business "Yi Mao information" department, its research results show that, affected by the Olympic limited production policy, about 19 blast furnaces in Tangshan area have been flameout, totaling 6500 cubic meters, resulting in 450 thousand tons / month of hot metal production affected.

At the end of 6 months ago, the government of Tangshan City of Hebei issued a circular calling for the implementation of a stop production regulation for 267 polluting enterprises in the whole city, involving 66 iron and steel enterprises, 12 coking plants and so on, and ensured that all the production stopped in July 8th.

Small and medium steel enterprises are the focus of regulation

A senior analyst at "Yi Mao information" told reporters that this round of production stoppage is mainly aimed at medium and small steel enterprises, because the pollution caused by this type of steel enterprises is even heavier.

"Air pollution mainly comes from sintering, coking and smelting links in the iron and steel production sector. Therefore, the actual effect on air improvement comes mainly from the preceding process, while small and medium-sized steel enterprises are not strong enough to control the above aspects." he said that the list of steel mills that were discontinued from the Tangshan area can also be seen mainly in small and medium sized rolling mills with relatively small and dispersed capacity.

Experts said that from the point of view of pig iron output, the concentration degree of Hebei area in 2008 1-5 was 56%, of which the capacity of small steel mills in Tangshan area was even more dispersed.

Reporters also learned from the people close to the China Steel Association that at the beginning of this year, the key investigation areas such as Tangshan had already gone to the town, and with the coming of the Olympic Games, the implementation of the production restriction will become stronger and stronger.

Yi Trade Research found that although

A steelmaking plant is also on the list of production restrictions, but the production condition of Tangshan Iron and steel company remains normal. There is no production plan this month.

Therefore, it can be seen that the key steel plants are still protected by local governments, which can be postponed for a certain time.

Another brokerage analyst said yesterday that the "Olympic limited production" represented by steel enterprises in Tangshan area is only the first step of national policy. There may be more stringent measures in late July, when those steel mills still waiting to see the situation may meet with the implementation of the policy.

Olympic reduction will not affect supply and demand pattern.

Although the Olympic reduction is a hot topic in the steel industry and has a wider impact, yesterday, many analysts expressed their cautious views on the actual impact on the industry when interviewed by reporters.

One analyst believes that the actual impact of the resulting supply reduction is not large. "In 2008, the output of pig iron in Hebei area in 2008 was 47 million 864 thousand and 500 tons, with an average monthly output of 9 million 572 thousand and 900 tons, and the reduction in output of 450 thousand tons / month accounted for only 4.7% of the average monthly output of pig iron in the country, accounting for about 1% of the total output of the country".

Yi trade analyst said that due to the existence of all kinds of upstream and downstream factors, even if the state does not take strict supervision over production cuts, the mills themselves will also have some measures to reduce production.

Because, on the one hand, the supply of coke and other raw materials continues to be tight, the profit margins of small and medium-sized steel mills are getting thinner and thinner. On the one hand, with the traffic control measures during the Olympic Games, the pportation costs of steel mills have also been greatly improved.

In addition, because of the downstream lockout restrictions during the Olympic Games, the downstream orders for these steel mills were lighter.

A Hebei steel plant yesterday said that the original vehicle could carry about 60 tons of steel. Now it can only load 20 tons, and the number of pportation increases, and the freight rate is doubled.

A steel trader also believes that since the small and medium sized iron and steel enterprises are mainly local sales, the major large steel enterprises in North China should consider the needs of other provinces in addition to the supply of the province. Therefore, the impact of the reduction of small and medium steel mills can be eliminated through the allocation of national resources by the large steel enterprises themselves, and there will not be too much demand fluctuation in areas other than Hebei province.