Price rise of steel due to power and production restriction

Recently, the situation of switching off and power rationing occurred in many provinces, and the shortage of power supply has become a focus topic for a time. Since August 2021, Yunnan, Jiangsu, Guangdong, Zhejiang, Inner Mongolia and other provinces have successively introduced various power and production restriction measures. These measures cover industrial peak shifting production, shutdown, orderly power consumption and power rationing. The affected objects include industrial production and commercial buildings, and even expand to public facilities and civil power in the northeast.

More and more steel enterprises are affected. The data show that according to the feedback of Tangshan billet steel enterprises, since 0:00 on September 27, the steel rolling enterprises have stopped production, and the lifting time is to be determined. Each plant may implement it one after another, and the overall operating rate will fall again. According to incomplete statistics, in September, several provinces across the country released the shutdown and maintenance of iron and steel enterprises, involving more than 80 steel plants. The data show that the average operating rate of electric furnace steel enterprises in Guangdong and Guangdong is less than 50%. Many electric furnaces and rolling mills in Zhejiang have been forced to stop production, and the number of steel enterprises reducing production in Shandong in recent days is still increasing.Overall, the upward shock of steel market in October is a high probability.

The price of iron ore has also exceeded US $100. Will it rise sharply?

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