Under the stimulus of "Xiaoyangchun" price, steel mills all over the country once appeared the phenomenon of resumption of production. According to media reports, Tangshan Songting Iron and Steel Co., Ltd. relaunched its blast furnace in April under the favorable situation of rising steel prices. Before that, the company had completely stopped production for five months.
Ma Zhongpu, an expert in iron and steel market, said that in the actual elimination of backward production capacity, some steel enterprises dismantled the blast furnace, and then rebuilt, and the dismantlement was counted as capacity. According to him, since last year, the annual production capacity of blast furnace has been nearly 100 million tons.
However, short-term interest-driven restitution has not been replaced by a "revival". At the beginning of May, with the wave of resumption of production, the steel price index suffered a sharp decline, from the price approaching 3,200 yuan/ton to more than 2,500 yuan/ton in early June, which continues to this day. Driven by the interests of the "Xiaoyangchun" period, some iron and steel enterprises began to prepare for the resumption of production at the beginning of the price recovery. However, due to the lagging effect of the 1-2 months of preparation, they encountered a "head-on drink" as soon as they resumed production.
Industry insiders pointed out that it is particularly important to adhere to the city-oriented and functional departments to strengthen the implementation of the policy of capacity removal. As an iron and steel enterprise, we must not be confused by short-term interests. We must quickly eliminate backward production capacity and seek vitality in improving quality and efficiency. As a local government, we must make up our minds to implement the task of reducing production capacity, so as to avoid the deadlock of reducing production capacity of iron and steel.