CISA senior management responded "power restriction" affected EAF steel: the power shortage is short-term. It is worth studying how to reasonably adjust the strategy of EAF steel enterprises on the basis of ensuring advanced environmental protection indicators

Rational view of production and power restriction, supply and demand matching is the Key to maintain stable income -- Q&A of the third quarter information conference of China Iron and Steel Association (Excerpt) 

On October 25, the third quarter information conference of China's iron and steel industry was held in Beijing. To view the high performance graphite electrode products information. Qu Xiuli, vice president and Secretary General of CISA, Wang Yingsheng, chief economist, and Shi Hongwei, Deputy Secretary General of CISA, and Huang Dao answered questions from journalists from CCTV, Reuters, China News Agency, China Metallurgical news, world metal Herald and other media around hot issues of concern to many media. Wang Dechun, Deputy Secretary General of CISA, presided over the meeting.

• Reuters: Recently, due to the shortage of power supply, many steel plants have stopped production, and the cost of steelmaking has further increased. The concern in the market today is that under the background of "double carbon", dual control of energy consumption may become a normal state. Will this affect the development of EAF steel?

• Qu Xiuli: First of all, the power shortage is short-term. I believe that as our country makes every effort to ensure supply and price stability, the situation of power shortage will gradually ease. EAF steelmaking consumption is relatively large, the cost is relatively high, but its variety structure is different from the long process, mostly high-alloy steel, stainless steel and other high value-added products, which can not only force the enterprise structure adjustment, product upgrade, but also can digest the enterprise's high raw materials, power costs.

• Huang Dao: From January to September this year, the energy consumption per ton of steel of member enterprises of the Iron and Steel Association decreased by 1.46% year on year, which is not easy. We have been paying close attention to the changes of comprehensive energy consumption per ton of steel in iron and steel energy statistics enterprises every month. From January to May, it shows a downward trend month by month, and from June to September, it shows an upward trend, and the growth trend is obvious. The analysis is mainly related to the reduction of production and power restriction, which leads to the reduction of capacity utilization rate, and each process cannot maintain the best working condition after the reduction. Power restriction also causes mismatch between upper and lower processes in each process.

• How to combine "double control" of capacity and output with "double carbon", energy intensity and total control is a very test of the wisdom and ability of the industry. We believe that iron and steel enterprises should first tap the potential internally to improve energy utilization efficiency, increase the proportion of self generation of waste heat, residual energy and residual gas, further reduce the proportion of external power purchase, and reduce the impact and loss of power restriction on the efficiency of energy system caused by iron and steel production.

• For some independent EAF steel enterprises, the current power shortage will indeed be a severe challenge. On the basis of ensuring energy conservation and advanced environmental protection indicators, it is worth studying carry out moderate and reasonable strategy adjustment for EAF steel enterprises.

  
  

  

• China News Agency: Recently, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment issued the notice on the implementation of the 2021-2022 heating season staggered production of steel industry in Beijing, Tianjin and Hebei and surrounding areas. What is the impact of this notice on iron and steel enterprises and what countermeasures should be taken by iron and steel enterprises?

• Huang Dao: This notice specifies the target tasks of reducing output in different stages, and puts forward further requirements for the specific implementation of peak staggering production. The staggered peak production scheme is highly connected with the goal of "double control" of capacity and output, which is not only to stably ensure the market supply and realize orderly dynamic adjustment, but also to ensure the improvement of the ecological environment of Beijing, Tianjin and the surrounding "2 + 26" cities, as well as to meetthe air quality requirements during the Hosting of the Winter Olympics.

• In the process of formulating the staggered peak production plan, the Department comprehensively considered many factors. For example, a considerable number of steel plants also undertake to use waste heat to provide heating services for the surrounding areas. Therefore, the implementation of the plan should not only ensure people's livelihood, but also really reduce output and pollution. During this process, the Steel Association has also cooperated with some research work. It is suggested that the departments should pay attention to the difference of policies in the implementation process, encourage all localities to learn from the horse racing mechanism in Wu'an, Hebei Province, and give appropriate incentives to excellent enterprises with ultra-low emission in peak staggering production; Some iron and steel enterprises whose pollution prevention and control work is not thorough should strictly take measures to reduce production.

• The Steel Association will continue to strengthen research, some common and individual problems existing in the implementation process of the wrong peak production plan, timely analysis and research, and report to the relevant departments. For example, the environmental protection authorities have recently been conducting spot checks on some enterprises that have completed the transformation of ultra-low emissions and will take timely and severe measures against any problems found. Serious environmental pollution problems in the past will also be followed up.

• For iron and steel enterprises, it is necessary to strictly implement the requirements of peak shifting production, standardize production and operation in good faith, ensure that the equipment stops and the output decreases, do not engage in digital games, strive to reduce production without reducing efficiency, and maintain the social image of iron and steel enterprises at the same time.

   

• CCTV and China Metallurgical News: on September 16, the National Development and Reform Commission (NDRC) issued the Plan to improve the energy consumption intensity and total double control degree. What are the specific impacts of this plan on the current and future industrial structure and energy structure adjustment of the iron and steel industry?

• Huang Dao: These policy orientations coincide with the preliminary consensus reached in the special research on iron and steel double carbon work led by he Wenbo, Secretary of the Iron and Steel Association party. The iron and steel industry should pay more attention to the carbon emission intensity per unit product (corresponding to: energy intensity per unit product). From the industry level, the unit intensity is more critical than the total amount and reflects the low-carbon level (energy efficiency level). The iron and steel industry continues to reduce process energy consumption, and the carbon emission (energy) intensity per unit product is more critical. The road map should focus on the scientific reduction of carbon emission intensity, which has become the goal of tapping the potential within the enterprise and the progress of the industry.

• Effectively through all kinds of circulation system, remove obstacles, should put China's scrap resources fully excavated, the above consensus and important point of view, and on the complete and accurate to fully implement the new concept of development to do a good job of carbon of peak carbon neutral opinion "and" improve the total energy consumption intensity and the double control degree program focuses on the related content is consistent. In the special investigation, it is also found that some landmark and demonstration projects of energy conservation and carbon reduction have been hindered recently due to local total energy control and the approval of "double high" projects. We suggest setting reasonable targets for energy conservation and low-carbon development, which will not only effectively implement the decision and deployment of the central government to curb the "two high" projects, but also avoid the suspension and postponement of iron and steel advanced technology and process projects, get the latest news from us.