China's environmental protection policy brings a new round of steel production decline

On the evening of March 2, the "plan for comprehensive control of air pollution in Tangshan in March" was released, which indicated that Tangshan, an important iron and steel town, had a strong expectation of a real decline in steel output due to the strict implementation of environmental protection policies. From February 23, Tangshan City started the daily report system of deep treatment of Engineering emission reduction of iron and steel enterprises. As a "new means" of Tangshan emission reduction, its main purpose is to control the output of iron and steel. The release and implementation of the "plan for comprehensive treatment of air pollution in March of Tangshan City" also made the target of controlling the decline of iron and steel output in Tangshan city more clear. The seven 450 blast furnaces required to be shut down in the document are expected to reduce the output of molten iron by 11,500 tons per day.

This is just the tip of the iceberg. If we strictly implement the market rumored 45% reduction target for Tangshan this year, it may affect Tangshan's steel production to reach 50 million tons, which has exceeded one third of Tangshan's steel production. At the same time, since this year, Inner Mongolia will no longer approve new steel and ferroalloy production capacity, and many leading steel mills have postponed the implementation of new steel production capacity. The news also makes the market believe that the country's determination to greatly reduce the steel smelting capacity.

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