Around 70% of steel production lines in Jiangsu, the country's second-largest crude steel production province, were affected by the province's tight double control over energy consumption and intensify, some attendees said during a symposium on steel supply and demand situation on September 26.
The symposium was held by the provincial steel industry association and the provincial steel service association, and attended by major steel industry leaders in the province.
While participants recognized the significance of dual control to greatly improve the energy efficiency and accelerate industrial and energy structure adjustment, they also raised concerns the stringent measures would severely affect normal operations.
Around 70% of steel production lines have been affected and may not be restored before October 7, with a rough reduction of 3 million tonnes of steel supply. Although the volume is not enough to induce market shortages in the short term, it has impacted the normal production and operation orders, some participants stated during the meeting.
Production of construction steel, plate and special steel decreased significantly at local mills due to the curbs, and supply of some kinds of steel products faced with shortages, Sxcoal learned. Some mills were heard to have planned to adjust production to reduce construction steel output and increase industrial steel production.
Jiangsu churned out 83.45 million tonnes of crude steel during the first eight months, accounting for 11.4% of the country's total, second only to Hebei, which produced 157.81 million tonnes or 21.5% of the total, according to the National Bureau of Statistics.
In the long run, the high-quality development of industries with high energy consumption and pollution, like the steel industry, should be guided by a more rational allocation of energy resources, and a high priority to reduce energy intensity and increase efficiency, more market-oriented and differentiated control measures, as well as the adoption of energy-saving management and technology, participants suggested.
(Writing by Emma Yang Editing by Tammy Yang)
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