Original title: To curb the blind development of “two highs” projects in many places, the price of rebar in the textile, steel, and chemical industries to reduce production rose by more than 10% within the month
Under the influence of stricter dual control measures in various places, the steel, textile, chemical and other industries will inevitably be affected.
Affected by multiple factors such as dual control of energy consumption and stricter environmental inspections, industries such as textiles, steel, and chemicals are facing substantial production cuts, which will push raw materials into the upward channel again. Taking the steel industry as an example, the latest price of rebar on September 27 was 5,758.89 yuan/ton, an increase of 12.99% in the last 30 days.
Since the beginning of this year, some areas still have problems such as the blind expansion of the “two highs” projects and the increase in total energy consumption instead of falling. The dual control of overhead energy consumption is tight, and relevant measures have been gradually increased from the central to the provinces and cities.
On September 27, the Ministry of Ecology and Environment announced a number of typical cases of the second round of the fourth batch of central ecological and environmental protection inspectors, many of which involved illegal energy use or ineffective control of high energy-consuming and high-emission projects. In addition, reporters from the 21st Century Business Herald found that many provinces such as Guangdong, Yunnan, Jiangsu, and Inner Mongolia have also introduced relevant policies to curb the blind development of the “two highs” projects.
Lin Boqiang, Dean of the China Energy Policy Research Institute of Xiamen University, said that China’s energy-intensive industries have a relatively large production capacity. Energy-consuming industries, speed up the adjustment of energy consumption structure, so as to lay a solid foundation for the realization of carbon peak and carbon neutral goals and tasks.
Many provinces curb the blind development of the “two highs” project
In the face of the severe energy saving and emission reduction situation, starting in September, many places across the country have further increased energy consumption dual control measures, and made every effort to curb the development of “two highs” projects.
Recently, the Guangdong Provincial Development and Reform Commission issued the “Implementation Plan for Guangdong Province to Resolutely Contain the Blind Development of the “Two Highs” Projects”. Guangdong will take strong measures to strictly implement the requirements for dual control of energy consumption and carbon emissions, and resolutely curb non-compliance with industrial policies and failures. Implementing the blind development of “two highs” projects such as the sources of energy consumption indicators, and promoting a comprehensive green and low-carbon transformation of the province’s economic and social development.
The Energy Bureau of Guangdong Province previously requested that cities and regions where energy intensity does not decrease but increase, suspend the energy-saving review of “two highs” projects in 2021 (except for major projects planned by the state). Take effective measures to quickly reverse the passive situation of work and ensure the completion of this year’s energy consumption dual control target, especially the energy consumption intensity reduction target task.
On September 7, Jiangsu Province, the second largest economy, launched a special energy-saving supervision action for enterprises with an annual comprehensive energy consumption of more than 50,000 tons in 2021. The scope of this special energy-saving supervision includes 323 enterprises with an annual comprehensive energy consumption of more than 50,000 tons of standard coal in the province. , 29 “two highs” projects with a comprehensive energy consumption of more than 50,000 tons of standard coal, and the “two highs” projects with a comprehensive energy consumption of more than 5,000 tons of standard coal that have been put into operation since 2020.
On September 11, the Yunnan Development and Reform Commission issued the “Notice of the Office of the Leading Group for Energy Conservation Work of Yunnan Province on Resolutely Doing a Good Job in the Dual Control of Energy Consumption” to resolutely curb the blind development of the “two highs” projects. , Industrial silicon and coal and other key industries to strengthen management and control.
Yunnan Province requires that, focusing on petrochemical, chemical, coal chemical, steel, coking, building materials, non-ferrous metals and other industries, establish a “two high” project list management system, eliminate and withdraw a batch of low-efficiency and backward production capacity, and actively guide enterprises to promote green and low-carbon Production, effectively promote industrial transformation and upgrading, and improve development quality and efficiency.
The relevant person in charge of Zhejiang Provincial Energy Bureau stated that the province’s economy was recovering well in the first half of this year, but energy consumption in various regions increased rapidly and increased, especially in the eight high-energy-consuming industries. The growth rate of electricity consumption reached more than 20%. Excessive growth and changes in the energy consumption structure have brought very severe challenges to the province’s energy resource security guarantee and energy consumption dual control situation. In the next step, Zhejiang Province will take the initiative to implement policies in terms of strengthening the management of the “two highs”, raising the access standards, adjusting the industrial structure, and implementing green electricity prices.
Lin Boqiang told the 21st Century Business Herald reporter, “Only by curbing the blind development of the “two highs” project from the source, can we lay a solid foundation for the realization of dual energy consumption control, carbon peaking, and carbon neutrality. The dual control measures for consumption are also helpless in the short term.”
Substantially reduced production in textile, steel and other industries
Under the influence of the tightening of the dual control measures in various places, the steel, textile, chemical and other industries will inevitably be affected, and some industries have experienced production reductions.
Yunnan is one of the major resource provinces in my country, with yellow phosphorus production capacity accounting for more than 40% of the country’s total production capacity, and silicon production capacity accounting for 20% of the country’s total. According to the notice issued by Yunnan Province, the average monthly output of the yellow phosphorus production line from September to December shall not exceed 10% of the August output (ie a 90% reduction in output); the average monthly output of industrial silicon companies shall not exceed 10% of the August output (ie a reduction 90% production). Based on this calculation, the national monthly output will fall below 190,000 tons/month.
In the printing and dyeing industry, Zhejiang and Jiangsu are the main gathering areas of printing and dyeing enterprises in the country. Keqiao District of Shaoxing City is a major textile printing and dyeing town in China. The total sales of textile products account for 1/3 of the country. Ma’an Street, Keqiao District, Shaoxing City issued a production suspension notice to high-energy-consuming enterprises in its jurisdiction on September 21. The duration is from that night to September 30. It is mainly printing and dyeing and chemical fiber enterprises. More than 160 enterprises are affected. , Ma’an Street accounts for about 80%.
He Wensheng ran a cloth shop in Keqiao District. During this period, his orders were also greatly affected due to the suspension of printing and dyeing enterprises. He Wensheng introduced to a reporter from 21st Century Business Herald, “The second half of the year is usually the peak sales season, and e-commerce festivals such as’Double 11′ are approaching. Now upstream companies have stopped production due to power cuts. Customers have been urging us for goods, and we have no choice. , Now the whole industry is like this.”
Recently, all steel mills in Yunnan Province have received energy consumption “dual control” indicators. Based on the energy consumption of each enterprise from January to August and the difference in energy consumption of each city, the requirements of each steel mill for production control are different, but overall It seems that the impact on output is greater. In particular, energy consumption in some cities and cities remains high, and local governments have even adopted requirements for a complete shutdown.
The 21st Century Business Herald reporter learned that the output reduction of steel mills in Yunnan Province will be concentrated from September 15 to September 30, and the output of the seven major construction steel production enterprises in the province will continue to be compressed. It is estimated that during the period of concentrated production reduction, the overall output of construction steel in Yunnan Province will decrease by 450,000 to 500,000 tons compared to the normal level.
Affected by the dual control of energy consumption, all steel plants in Jiangsu have recently received production reduction targets and have begun to implement production reductions. The current impact on production is mainly concentrated on September 10th to October 15th, construction steel, coil, The output of various varieties such as high-quality steel have varying degrees of influence.
Tangshan, a major steel town, also requested that 19 steel companies continue to implement a total reduction of 30%. Among them, 3 steel companies that did not complete their annual governance tasks on schedule will have their emission reduction measures tightened by 10%.
Raw material prices rose further
Since the beginning of this year, the price increase of bulk commodities has caused concern. In the context of substantial reductions in production in high energy-consuming industries such as steel, chemicals, and textiles, raw material prices will inevitably enter the rising channel again.
Taking the rebar market as an example, on September 28, among major cities across the country, the prices of rebar in Shanghai, Nanjing, Jinan, Fuzhou, Wuhan, Beijing, Shenyang, Chongqing, and Lanzhou generally rose by 10-100 yuan/ton.
Industry insiders have analyzed that the impact of production restrictions and power cuts in many steel mills is still fermenting, and steel production is expected to continue to decline. At the same time, pre-holiday and downstream actively stock up, coupled with some speculative demand, the steel market is still in a mismatched pattern of supply and demand, steel prices will continue to run at a high level.
Textile prices have also entered a new upward channel. According to the price monitoring of the business agency, in September 2021, the commodity price increase and decrease list included 11 commodities in the textile sector that increased month-on-month. Among them, there were 2 commodities with an increase of more than 5%, accounting for 11.8% of the monitored commodities in this sector. The top 3 products are nylon FDY (7.61%), PTA (5.81%), and nylon DTY (4.10%).
The dye industry has also ushered in a new round of price increases recently. Zhejiang Longsheng, Haiwan Precision, Zhejiang Runtu and other companies have successively issued price increase letters. The price increases were all 10%. Among them, Zhejiang Runtu raised the price of dyes again on September 16th after September 4th.
He Wensheng told a reporter from 21st Century Business Herald, “During this period, due to the upstream price increase, the price of our fabrics has generally risen by more than 5%, sometimes one price per day. Now we all require customers to re-inquire when placing orders. “
From the recent price trends of yellow phosphorus, organic silicon, PVC and other products, it can also be seen that the prices of chemical raw materials are also in an upward channel. Take yellow phosphorus as an example. According to the monitoring of bulk commodity data, the price of yellow phosphorus in Yunnan and Guizhou has risen. The average price of yellow phosphorus last Tuesday was RMB 30,000/ton, and the average price of this Tuesday was RMB 44,000/ton. The price rose on the 7th by 46.67%. Yunnan enterprises have curtailed power consumption and reduced production in Guizhou. Yellow phosphorus manufacturers mainly issued pre-orders, and the spot supply was tight.
A person in charge of a chemical company in Foshan said that it is currently in the peak demand season. With the imbalance between supply and demand further intensifying, before the end of the year, the price increase of chemical products will continue under the low inventory level.
Lin Boqiang analyzed to a reporter from the 21st Century Business Herald, “With the implementation of dual energy consumption control measures in various regions, production reductions in steel, textile, chemical and other industries are inevitable. In the short term, it may push up the prices of raw materials and the production costs of manufacturing enterprises. In the long run, to solve these problems, we must accelerate the adjustment of energy structure and industrial structure.”
(Author: Yu Changhuan, Editor: Zhou Shangqi)
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