Upgraded "Production Restriction Order", Steel Sector Upgrades Again
Release Time:
Jun 13,2023
Recently, the "production restriction order" in the steel industry has been further upgraded, and domestic steel mining enterprises under carbon neutrality requirements have started to limit or reduce production.
Recently, the "production restriction order" in the steel industry has been further upgraded, and domestic steel mining enterprises under carbon neutrality requirements have started to limit or reduce production.
On March 19, Tangshan issued the Notice on Submitting the Measures for Production Restriction and Emission Reduction of Iron and Steel Enterprises, requiring that 7 iron and steel enterprises including Donghua Iron and Steel should implement the emission reduction measures of 50% production restriction from March 20 to June 30, and 30% production restriction from July 1 to the end of the year.
Another 16 steel companies implemented a 30% reduction in production from March 20th to the end of the year.
Industry insiders say that in the context of carbon neutrality, the steel industry's production restriction efforts continue to strengthen, and the pattern of tight supply side has become apparent. Steel benefits from pro cyclical demand, coupled with a downward trend in raw material prices such as iron ore and coke. As a result, steel companies' profit expectations improve, and the investment value of steel stocks may become prominent.
