Energy conservation and emission reduction tasks completed the continuous resumption of production of steel mills

Due to the completion of energy conservation and emission reduction tasks, steel companies that were previously restricted by electricity consumption are gradually returning to production.

According to the latest data released by China Iron and Steel Association yesterday, domestic steel production continued to rise in December. In the first half of the month, key large and medium-sized enterprises produced a total of 14.05 million tons of crude steel. The national estimate was 16.669 million tons, and the average daily output was 1.405 million tons and 166.7 respectively. Ten thousand tons, a net increase of 37,000 tons and 24,000 tons, an increase of 2.7% and 1.5% respectively.

In this regard, United Metals analyst Hu Yanping told the "First Financial Daily" that in December, the domestic steel industry energy conservation and emission reduction continued to relax, in addition to partial partial power cuts, most steel companies gradually return to normal production, leading to steel The main reason for the continued recovery in production.

This is not the first time that production has rebounded in the second half of this year. According to figures released by the National Bureau of Statistics, the national crude steel output level in November was 1,672,400 tons, an increase of 49,700 tons from October, which has been increasing for two consecutive months. According to the latest report released by the China Iron and Steel Association, this reflects the gradual relaxation of production control for steel companies as local energy conservation and emission reduction tasks are completed.

In addition, since November, the main steel products, especially the price of long products led by thread, have been lifted, which has also stimulated the enthusiasm of steel mills to some extent.

However, Hu Yanping said that although steel mills resume production, although the trend is large, the crude steel output in December will still be at a relatively low level, and the daily output is more than 1.7 million tons. The gradual recovery of steel production in the past two months will not increase the supply pressure in the circulation market, thereby curbing market operations. The current social inventory of the steel market is already at a low level. The total inventory of major steel products is about 12.81 million tons, which is 31% lower than the peak in early March, which is equivalent to the inventory level at the beginning of the year. With the increase in the volume of steel mills, social inventories will increase, but due to the low absolute volume, inventory pressure will not increase significantly in the short term.

In the report, China Steel Association believes that from the current market situation, steel demand will continue to grow. Affected by factors such as rising raw fuel prices and falling steel inventories, steel prices are still rising slightly. However, due to the arrival of New Year's Day, Spring Festival and other holiday seasons and the off-season of winter consumption, it is expected that the latter market will continue to operate with small fluctuations. From the perspective of the domestic steel market in the later period, the demand for long products will increase rapidly, which will drive the price to continue to rise, the demand for sheet metal is relatively weak, and the price increase will be lower than that of long products.
 

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