In the background to the production capacity, "the six activities" Although the environmental pressures will not be the last straw overwhelming steel prices, but the new normal limit production or Tangshan steel prices will ponder how to set aside time to exit.

　　April 1, 2016 Tangshan World Horticulture Exposition (hereinafter referred to as "World Park"), the main venue of the Nanhu Park, is displayed on the countdown from the opening of a further 28 days, the gate security gates have been installed, two or three visitors It is walk in the park, taking pictures.

　　The World Horticultural Expo theme of "City and Nature phoenix," as the world's steel production accounted for 5% of the old industrial city, between the steel and flowers, Tangshan chose the latter, which will undoubtedly require a great deal of efforts. March 15 announced the "2016 major events Tangshan World Horticulture Expo air quality protection plan" (hereinafter referred to as "program") is displayed, April 27 - between October 16 date, steel prices in the Tangshan area will be divided into five time to take the mandatory emission reduction measures, a total of 33 days.

　　From the previous year's APEC meeting, to last year's parade, to this year's World Park, more and more frequently to ensure air quality, increasing the yield Tangshan steel prices and volatility in steel prices, some companies in the market and environmental protection the dual pressures of selected production.

　　Limited production "new normal"

　　During World Park on iron and steel enterprises have ceased production, limited production rumors, as early as last summer, he began to spread in Tangshan, and several times by media rumor.

　　March 15, "program" officially announced. Which shows that the air quality protection is divided into five periods, spanning the spring, summer and autumn, almost every month once.

　　The reason is divided into five periods, corresponding to the fact the six events this year to be held in Tangshan, namely: Horticultural Expo, China - Central and Eastern European countries, meeting local leaders, Hebei Province, China International Economic and Trade Fair, the fortieth anniversary of Tangshan earthquake commemoration, Golden Rooster and Hundred flowers Awards event, China-Latin America Business Summit.

　　In these key control period, Tangshan City, will take compulsory measures to reduce emissions. Emissions can not be secure, enterprise compliance should stop the discharge of pollutants, emission standards can be stabilized steel companies have to reduce emissions by more than 50%.

　　"Programme" annex, to focus on the control list of enterprises to limit production period during the "six activities," including iron and steel enterprises reached 371, accounting for 37.6% of the total limit production enterprises. Which even specifies each company needs to control the equipment, for example, the Tangshan Iron and Steel Group Co., Ltd. (hereinafter referred to as "Tangshan Iron and Steel") on the need to control the Southern District of 1 360 square meter sintering machine Taiwan and North 2 210 square meters, 1 180 square meters, 1 265 square meter sintering machine.

　　Tangshan Iron and Steel, a staff member told reporters that the limited production is not complicated, as long as the prescribed time for the sintering machine can be closed, Tangshan Iron and Steel currently used in pollution control facilities have reached the international advanced level, there is no complete air support tasks problem.

　　Exacerbate price volatility

　　Xu Xiangchun, iron and steel enterprise production is continuous, in addition to limiting the production of a few days, ready to limit production and limit their postpartum recovery also takes about 3-4 days, the World Park will limit production of steel enterprises production, sales certainly It is influential.

　　"However, in terms of the national market, the impact is still limited." Said Xu Xiangchun, after all, a serious surplus of steel production capacity, the rest have sufficient production capacity to make up for the impact caused by limited production of Tangshan.

　　Tangshan Steel Trade Co., Ltd. Xin Man manager Li Haisheng also told reporters that last year, during the parade, Tangshan steel prices have also implemented measures to protect air quality, but the impact on steel prices is not significant. In addition to individual specifications out of stock, the price is only slightly higher a little.

　　However, if the overlay and seasonal factors, limited production is likely to cause greater impact. Li Haisheng said that every year after the Spring Festival is the peak season for steel sales, since the site started after the holiday, steel demand to rise. And before the Spring Festival this year, the central group of environmental inspectors Hebei conducted a month-long environmental inspectors, many small steel mills in Tangshan have limited production, the big steel mills in three production lines was still only a start line, which leads to section after the steel shortage, prices soared.

　　"Eighth day to work, billet price is 1450 yuan / ton then began to rise, before a day, up 5 10, and now it is more than 100 pieces." Li Haisheng said, to around March 9, billet prices reached 1900 yuan / ton, then gradually callback, now down to 1790 yuan / ton.

　　Previously, the hands of dealers will hoard a little steel. Now, with increased price volatility, dealers are afraid to hoard goods, can only do short-term plan, with the to-go.

　　"Too risky, changes are hundreds of hundreds, up a good point, if the drop how to do?" Li Haisheng said.

　　In addition to steel price volatility, limited production has also led to a rise in iron ore prices. Data show, March 7, iron ore prices soared nearly 20 percent, the largest single-day record gain. Some analysts said, because of Tangshan Shi Park will limit production, iron and steel enterprises to catch up before the cut-off increase production, leading to its purchase of iron ore rush, thus promoting the iron ore prices soared.

　　The last straw?

　　Under Forced alive Park will work to protect air quality, it has announced the shutdown of steel mills.

　　July 31, 2015, Tangshan Cheng United Steel Co., Ltd. (hereinafter referred to as "into the United Steel") issued "this book", said since the Tangshan City will host the World Park, according to the relevant requirements of the municipal government, district government the company belongs to shut down within the scope of business, the company in August 1, 2015 shut down the dissolution.

　　In addition, Tangshan Guofeng Iron & Steel Co., Ltd. also plans to March 2016 the North blast furnace, shut down all production lines, the current North has three 450 m3 blast furnace and two narrow lines, shutdown will affect steel supply 5000 -6000 tons / day.

　　Xuxiang Chun told reporters, into the United Steel operating conditions have been bad, always were struggling, this time by the opportunity of the World Park, just completely shut down.

　　March 24, the reporter saw at a United Steel plant machines have been stopped, chimneys no longer smoke, the plant was very quiet, a person at all. North door is a brick wall sealed, only the East Gate there is a security guard on duty.

　　The security, said factory last summer, "yellow", more than 4,000 workers buyout, compensation according to length of service, less a few thousand dollars, and more on the yuan, the current compensation have all been cleared. After the workers were laid off, a lot of men go to Nanhu Park as a security guard, the woman is to the supermarket to work.

　　In his view, environmental pressures increase is mainly due to discontinued. EPA "every few days" will be checked not only central, as well as provincial, city of. Resulting in frequent plant shut down, but even discontinued the payment of workers' wages should be business as usual, which makes the boss a lot of pressure.

　　Xu Xiangchun, in fact, even as the World Park will protect air quality so often limited production, steel prices may also have the technical means to deal with. For example take the stew furnace way, at most, some additional costs, reducing the number of useful life of equipment, but that does not completely shut down.

　　The real reason discontinued or pessimistic expectations, slowing Chinese economic growth, adjusting the economic structure, making the decline in demand for steel, coupled with a serious excess capacity, so that supply and demand is very prominent.

　　"However, on the Withdrawal of iron and steel enterprises is beyond our control." Xu Xiangchun, steel is asset-heavy model, a large number of loans and workers, once quit the contradictions will be exposed, but also how a bank loan? How placement of workers? Therefore, the general mentality of steel prices are possible contradictions delay, it can not be delayed until the date.

　　In the background to the production capacity, "the six activities" Although the environmental pressures will not be the last straw overwhelming steel prices, but the new normal limit production or Tangshan steel prices will ponder how to set aside time to exit.