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Steel industry Stop-work order again! Six months!

From October last year to March this year, the “Beijing-Tianjin-Hebei stop-up tide” is still vivid, and this year’s suspension order has come again! !
Recently, the state issued the “Action Plan for the Comprehensive Management of Air Pollution in the Autumn and Winter of 2019-2020 in Beijing, Tianjin and Hebei and the Surrounding Areas”, which is what everyone calls the “stopping order.” From October 1st, 2019 to March 31st, 2020, a six-month special rectification work will be carried out. So which areas are involved in the shutdown order? What new changes have been made to this year’s shutdown?

“Stop-work order” relates to which areas?
The cities involved in the suspension include: Beijing, Tianjin, Shijiazhuang, Tangshan, Handan, Xingtai, Baoding, Zhangzhou, Langfang, Hengshui, Shanxi Taiyuan, Yangquan, Changzhi, Jincheng, Shandong Jinan, Zibo, Jining, Dezhou, Liaocheng, Binzhou, Heze, Zhengzhou, Kaifeng, Anyang, Hebi, Xinxiang, Jiaozuo, and Xiangyang, referred to as “2+26” cities.
Every autumn and winter season is the most serious time for smog weather. Now the country’s second round of environmental protection is still in progress, and environmental supervision throughout the country has made the air significantly improved.

What changes have been made to this year’s policy?

Shutdown and limited production focus
The steel, coking, and brick industries implemented partial peak production. In key cities such as Tianjin, Shijiazhuang, Tangshan, Handan, Xingtai and Anyang, the production capacity of steel in the heating season is limited to 50%; the ratio of production in other cities is not less than 30%.

Shutdown and limited production focus
Before the end of September 2019, all localities completed a new round of “scattering and pollution” enterprise inspection work, and implemented the classification and disposal according to the principle of “first stop and then cure”.

Shutdown and limited production focus
Since October 1, 2019, strict implementation of special emission limits for air pollutants in brick, steel, petrochemical, chemical, non-ferrous (without alumina), cement industry and industrial boilers..

Shutdown and limited production focus
It is understood that the Ministry of Ecology and Environment has also reported on the implementation of the environmental administrative punishment cases and the “Environmental Protection Law” in the first half of 2019. In the first six months of this year, a total of 72,192 environmental administrative penalties were issued, and the amount of fines and penalties was 585,030,780 yuan. The penalties were in Jiangsu, Guangdong, Hebei and Shandong provinces. Now that the new stoppage order has struck, it is necessary that the supervision will be even more intensified.

In the second half of this year, material price will become inevitable

Some companies have revealed that it is difficult for small and medium-sized enterprises to survive under the high pressure of environmental protection, because it takes a huge cost to improve the equipment to meet the rectification requirements, and its maintenance costs will cause the daily cost of the enterprise to rise by nearly 10,000 RMB. Small and medium-sized enterprises can afford it.
The impact of policies on the economy is clear, and the surge in raw materials has led to a significant increase in supply chain supply risks. Then environmental protection rectification of many upstream enterprises to stop production and rectification, in the supply chain coordination today, led the whole body, the lack of goods caused by the supply of enterprises.

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