How does the hottest differential electricity pric

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How does differential electricity price affect the steel industry

the national development and Reform Commission and the Ministry of industry and information technology recently issued a notice that from January 1, 2017, the production power consumption of enterprises listed in the guidance catalogue for industrial restructuring (2011 version) (Revised) of obsolete devices in the iron and steel industry will continue to implement differential tariffs, and the price increase standard will be increased from 0.3 yuan per kWh to 0.5 yuan. At the same time, for iron and steel enterprises that fail to complete the task of resolving excess capacity in the implementation plan on schedule, the elimination price increase standard is implemented, that is, 0.5 yuan per kilowatt hour

it is understood that a total of 44 types of devices have been eliminated in the iron and steel industry, most of which have been basically eliminated. At present, the iron and steel industry mainly involves sintering machines below 90 square meters, converters below 30 tons and blast furnaces below 400 cubic meters, power frequency and medium frequency induction furnaces (used for the smelting of ground bar steel, ordinary carbon steel, stainless steel) and hot-rolled narrow-band steel

according to the survey, the power consumption of 90 Ping sintering machine is about 45 degrees per ton. If the electricity price is increased by 0.2 yuan, the cost of sintering link will increase by about 9 yuan. Considering the grade and consumption into the furnace, the cost per ton of iron will increase by about 20 yuan

blast furnaces with a volume of 400 cubic meters and below have been included in the eliminated capacity in the country in early years. Many steel mills have been expanded and upgraded or have reached 450 or more in the relevant departments. According to the research of Zoomlion, the actual furnace capacity of 400 and below is very small, with a capacity of about 10million tons, and the cost of iron per ton will rise by about 15 yuan due to the differential electricity price. In addition, although the state has listed blast furnaces of 400 cubic meters and below as obsolete equipment, the elimination standard in some places is higher than that in the state. For example, Hebei wants to eliminate blast furnaces of 450 cubic meters and below, and the relevant iron making capacity reaches 27.2 million tons. If the price increase standard of its electricity price is raised to 450 cubic meters of blast furnaces with reference to the national price increase standard, the impact will be expanded

it is understood that generally, more than 600 blast furnaces ensure the safe and stable operation of the system, with sintering machines below 90 square meters. Therefore, if the steel plant burns the sintering machine below 90 square meters, Ji Guangqi, a researcher at the Institute of building fire protection of the Chinese Academy of Building Sciences, also pointed out that the production cost of deformed steel bars will increase by 41 yuan for blast furnaces below 400 cubic meters and the corresponding rolled materials. For steel rolling, the elimination category involves hot-rolled narrow-band steel, with an annual output of about 65.5 million tons. The actual power consumption per ton of steel in production is about kwh, and the rolling cost of hot-rolled narrow-band steel will rise by Yuan due to differential electricity prices

the impact of the increase in electricity price is the most strenuous, creating a new situation of high-quality transformation and development in Huaibei. Nothing injects more powerful momentum than the medium frequency furnace. Its power consumption is large, ranging from kW, so the cost per ton of steel increases by 120 yuan. After the increase in electricity price, the withdrawal of medium frequency furnace production enterprises is accelerated. The national medium frequency furnace involves a steelmaking capacity of about 80million tons, with an annual actual output of million tons. However, recently, the central and local governments have severely cracked down on medium frequency furnaces, so the actual impact of electricity prices on them has been very limited

enterprises mentioned in the policy that have not completed the elimination of excess capacity on schedule will also implement the price increase policy according to the elimination category. In 2016, the implementation of the elimination of excess capacity was better, and many places accelerated the process to complete the task ahead of schedule. By the end of November 2016, the whole country has basically completed the annual elimination task. In the later stage, we need to pay attention to the task allocation, implementation period and specific implementation of capacity reduction in all provinces in 2017

in addition, for iron and steel enterprises that do not implement the differential electricity price policy, the stepped electricity price policy is implemented according to the process energy consumption and the step electricity price increase measures are implemented with the "energy consumption quota per unit product in the main process of crude steel production" (GB) as the standard. The specific standard:

it is understood that the energy consumption in the main production process of key steel enterprises in 2015 basically meets the quota requirements. Zhongda hook is one of the most common lifting appliances in lifting machinery, and the process energy consumption of iron and steel enterprises is well controlled, and the impact of step tariff increase is limited. For example, if the blast furnace is put into operation before October 2014, the energy consumption requirements of sintering, pelletizing and blast furnace processes are not more than 55kgce/t, 36kgce/t and 435kgce/t, and the price will not be increased. In fact, the energy consumption of sintering, pelletizing and blast furnace processes of key steel enterprises in 2015 was 47.2kgce/t, 27.65kgce/t and 387.29kgce/t, lower than the price increase standard of energy consumption limit

generally speaking, the overall impact of the iron and steel industry is not particularly great, especially for large enterprises. However, for backward production capacity and small enterprises, it does increase the production cost of enterprises, reduce the price advantage and competitiveness of steel, and it is easier to be eliminated in the market competition. The deep significance of differential electricity price is to speed up the elimination of backward production capacity and suppress backward production capacity at all levels from administration to market. It should be noted that since last year, small and medium-sized private iron and steel enterprises have been the first to be impacted by various policies such as environmental protection, and the intensity of environmental protection inspection will only increase. Environmental protection supervision, energy consumption pressure, safety inspection and other measures have formed a general trend to promote the elimination of backward production capacity and reduce excess production capacity, and the living space of backward production capacity is gradually reduced

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