The Ministry of Industry and Information Technology seeks opinions on the “Regulations for the Production and Operation of the Iron and Steel Industry†(abbreviated as “Conditionsâ€) on its official website. The “Conditions†clearly state that China’s iron and steel enterprises are strictly forbidden from producing next-generation rebar, secondary rebar, and hot rolled silicon steel sheets from next year. Lagging capacity products.
Grade II accounts for half of rebar output
It is reported that "conditions" are the normative documents for the basic conditions for the production and operation of the existing iron and steel industry. The Ministry of Industry and Information Technology has again revised the steel industry construction and reconstruction projects to achieve higher access standards. One of the biggest changes in the newly revised “Conditions†is clearly stated “From 2013 onwards it is forbidden to produce first-grade rebar, second-grade rebar, hot-rolled silicon steel and other products.
It is understood that steel bars are classified into one to four grades of steel bars according to their mechanical properties, among which grades three and four are collectively referred to as high-strength bars. “Compared with high-strength steel bars, one- and two-stage rebars have poor pressure bearing capacity, and they use more steel and are more polluting during the production process. In recent years, the country has been promoting the use of high-strength steel bars.†.
“In 2011, China's steel output accounted for 17.5% of the total steel output, among which the proportion of primary rebar was very small, and now there are very few steel mills. Secondary rebar currently accounts for about half of the total rebar production. The output of rolled silicon steel sheet is also shrinking, accounting for less than 10% of silicon steel sheet production,†said Hu Yanping, an analyst at Steel Network.
Increased elimination of backward production capacity
“Unlike the vague formulation in the documents issued in 2010, the implementation of this phased-out species will be greatly strengthened after it is clearly written into the operating conditions; although the “Guidance Catalogue†released in the same year requires the elimination of backward production capacity, due to the Is a guiding document, there is no mandatory effect on steel prices, so the elimination effect is not ideal.†Wang Guoqing said.
Li Xinchuang, the deputy secretary-general of the China Iron and Steel Association, said that this time the national policy has increased the intensity and pace of elimination, which is considered to be a good start. However, the volume of the Chinese steel industry is so large that the elimination must be a step-by-step process. Expect one step.
How will the elimination of secondary rebar, which accounts for half of the output of rebar, affect steel companies?
Analyst Hu Yanping of the steel network believes that in this round of the upcoming tide of elimination, large steel companies that produce high value-added products will have obvious advantages, and private small steel enterprises will be subject to greater impact. Although Hebei Iron & Steel Co., Shagang Steel Co., Ltd. and other large steel enterprises have large production of rebar, due to the relatively rapid shift to the production of tertiary rebar, the impact should be small.
The deputy secretary-general of the China Iron and Steel Association stated that the seismic performance of the secondary rebar is not good enough. After the Wenchuan earthquake in 2008, the country began to encourage the use of high-strength steel in construction projects, and in the market with the use of high-strength steel to promote the use of large demand Increase, steel mills are also constantly strengthening research and expansion in this area.
In July 2011, the State issued the "Code for the Design of Concrete Structures". It requires that 400 MPa and 500 MPa high-strength steel bars be used as priority in the project, and 335 MPa secondary steel bars can be used to eliminate 235 MPa. Grade 1 reinforcement.
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