With the approaching heating season and the strengthening of environmental protection policies, large-scale steel plant will stop production and the overall supply of steel will drop. As a result, the price of steel will not be stable.
Recently some steel mills in Tangshan Province gradually overhaul, operating rate continued to decline, as of the current statistics of 77.44%, a substantial reduction in the supply of billets, steel prices will be very willing to increase. As the market demand for steel increased only unabated, leading to easy up prices fell hard.
The most stringent stoppage order in the history started full implementation on November 15, and the policy swept across many cities such as Beijing, Tianjin and Hebei. As the weather in the north is colder than the south, it will face general heating as the winter approaches, thus affecting the environment. Haze has now become the main target of the national environmental protection policy. In winter, coal demand will increase, and air pollutant emissions will also increase. To ensure a good environment, state environmental protection policies mainly focus on polluting enterprises, and steel mills and coal mills face downtime.
In order to ensure heating, cement plants, ceramic tile factories, ceramic factories, gypsum plants, steel mills and other will also be in winter to stop the operation, and require staggered peak production, some companies can not produce if the environment is not up to standards, EPA survey strict.
Restrictions on steel will inevitably affect the materials used in the transportation industry and the transportation industry. For example, rollers, conveyors, supports, etc., the prices of products are correspondingly increased by a few percentage points due to the reduction of the environmental output. On the other hand, in order to meet the requirements of environmental testing, the factory must purchase purifying devices, purify air or purify sewage so as to increase the cost of the enterprise and increase the price of the product accordingly. For the export trade industry, but also a huge challenge.
Iron and steel companies face what environmental transformation difficulties? Feedback from the business situation, troubled steel business is not just a financial problem. To win the “hard battle” of environmental protection, the relevant policies must be managed in a multi-pronged approach. For example, the project should be optimized in terms of examination and approval procedures, a fair market environment, harmonization of environmental tax standards, rewards and support for the development of circular economy industries, and so on.
First, we must improve the capacity of the exit mechanism, do a good job policy convergence. Europe has a quota system for the withdrawal of iron and steel enterprises, there are a series of preferential policies for enterprises to switch jobs and re-placement workers. At present, the merger, reorganization and backwardness of China’s iron and steel enterprises require companies to bear the higher costs themselves and also face the risk of increasing losses. Therefore, the government should put in place practicable supporting policies on financial subsidies and so on to promote the exit, and form a strict mechanism of forcing industry to enter the market so that backward production capacity can gradually withdraw from the market. The government should strictly check the blindly newly built and repeatedly constructed steel projects Resolutely stopped.
Second, we must encourage the development of new environmentally friendly technologies to support the development of the environmental protection industry and the by-products development and utilization industries and reward the energy-saving emission-saving industries to achieve incentives. use.
The third is to create a fair and competitive market environment. Under the premise of strictly implementing the environmental protection policy, the standard of unified environmental protection tax should be strengthened and the penalties for environmental protection should not be overstated. Jinan Iron and Steel Group, Shandong Iron and Steel hope that the strict implementation of environmental protection policies, we must “environmental clearance” in the first place, increase the economic penalties polluting enterprises, the introduction of accountability system in charge of enterprises. Relevant person in charge of Shibei Iron and Steel Group, Hebei Iron and Steel Group, said it is necessary to unify the environmental tax standards to eliminate different ownership of enterprises, different geographical differences between treatment, plug the loopholes “loopholes.”
Fourth, the desulfurization of sintering machines and other environmental protection projects to give some policy funding. The government may adopt such methods as “reward and substitution,” “promoting and defending with awards,” and “promoting and awarding prizes with awards.”
Fifth, reduce the use of high-sulfur raw materials.