Research on the Implementation of New National Standard Reinforcement Production by Major Steel Mill Brands in the East China Market

My Steel Network News: On July 15th, steel enterprises such as Zhongtian Steel and Zhongxin Steel have successively announced the switch to new production standards for hot-rolled ribbed and hot-rolled round steel bars. According to the dates on the announcements, Zhongtian Steel and Zhongxin Steel will start organizing the production of steel bars according to the new national standards on July 20th and August 1st, respectively.

The new national standard was released on June 25, 2024, and will be implemented on September 25, 2024, with only 73 days left for transition. Compared with the 2018 version of the recommended national standard, this time it is a mandatory national standard. This means that the new standard must be implemented, so production enterprises should familiarize themselves with the changes in the standard and adjust the production process as soon as possible before the implementation of the standard.

For this reason, the editor has conducted a survey on the production time of new national standards by major steel mill brands in the East China market, and the results are as follows:

As shown in the table, 52.17% of the steel mills in the survey sample have not yet determined the time to implement the new national standard for steel bar production, 26.09% of steel mills plan to start new national standard steel bar production in August, and only 21.74% of steel mills plan to start new national standard production in late July or September.

This is not only related to the cost increase caused by the new national standard production but is also closely related to the sales-inventory turnover rate of the steel mills. Article 25 of the "Interpretation of the People's Republic of China Standardization Law" stipulates that products and services that do not meet the mandatory standard shall not be produced, sold, imported, or provided. According to the regulations, after the new national standard takes effect, the old national standard products shall not be produced and sold. In the production link, it is not a big problem for each steel mill to switch to the new national standard in advance, but there are still risks in the sales link. Theoretically, the old national standard can also be produced and sold to dealers one day before the implementation of the new national standard, but it would be illegal and illegal for the dealers to sell the old national standard products the next day.

Under the current market pattern of high inventory and low demand, the smooth digestion of the old national standard inventory in the market will still be a difficult problem. This new standard has brought new challenges and opportunities to the market, but it also makes the market face the problem of digesting the original stock resources. After the implementation of the standard, the old standard steel bar products accumulated by the distributors may face the situation of being unable to sell.

Steel production enterprises should reasonably plan the production plan, balance the inventory structure of old and new products in the early stage of the implementation of the standard, and market traders should seize the time to sell the original standard inventory, to ensure that after the implementation of the mandatory standard, they can seize the market demand for steel bars that meet the new standard in time, maintain the market sales share, and form a "premium" sales advantage in terms of quality.

Note: Article 25 of the "Interpretation of the People's Republic of China Standardization Law": Products and services that do not meet the mandatory standard are prohibited from production, sales, import, and provision.

Editor's Recommendation:

Focus on the steel industry, providing spot trade prices, real-time industry news, steel mill price adjustment information, market hotspot interpretation, and research reports for steel, scrap, coke, iron ore, etc., all over the country.

Quickly scan the QR code to get a 30-day membership trial

Disclaimer: The information provided by My Steel Network is for customer decision-making reference only, and any decisions made by the customer are unrelated to My Steel.

Recommended Attention:

Reply to the public account with [Benefits] to get exclusive benefits for fans.

Reply to the public account with [Steel Price] to subscribe to all steel market price SMS for free.

👍 Like this article for a big profit in the steel market!!

Americ Energy (CHINA) Co., Ltd.

Americ Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.

Contact Information:

• Website: www.metal-ae.com
• Email: ae@americenergy.com
• Phone: 13521210668
• whatsapp: 13521210668
• Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China

 

Successful Hot Test of GCDMR's 1780mm Hot Strip Mill Project in Indonesia by China Heavy Machinery Institute

Recently, the 1780mm hot strip mill project of GCDMR's hot rolling factory, undertaken by the wholly-owned subsidiary of China Heavy Machinery Institute, Xi'an Heavy Machinery Technology Co., Ltd., in conjunction with Erzhong (Deyang) Heavy Equipment Co., Ltd., has successfully completed the full-line hot load test and rolled the first volume. During the hot load test, the equipment operated stably, and the steel coil had a good shape.

The contract includes the design of the entire line of electromechanical and hydraulic systems, complete equipment supply, equipment commissioning, performance acceptance, and technical guidance and training. This is the first set of modern hot continuous rolling equipment for stainless steel and carbon steel exported overseas by Guoji Heavy Industry, with comprehensive technical performance reaching an internationally leading level.

This project is a joint investment by Tsingshan Group and Delong Group in the Tsingshan Industrial Park in Morowali County, South Sulawesi Province, Indonesia, with an annual output of 4.5 million tons of 1780mm hot continuous rolling production line, including 1 million tons of stainless steel hot rolling coil and 3.5 million tons of carbon steel hot rolling coil annually. China Heavy Machinery Institute, affiliated with Guoji Heavy Industry, has organized, designed, manufactured, and served precisely with its brother unit Erzhong Equipment, fully leveraging its strong R&D strength and full industry chain manufacturing capabilities of major technical equipment, to create a high-quality, high-quality, and highly stable hot continuous rolling machine production line.

Ningbo Baoxin's BA Plate Order Volume Increased by 34% Year-on-Year in the First Half of the Year

Recently, Ningbo Baoxin held a management symposium for the second half of 2024, mentioning that the company continues to expand orders and optimize the structure to enhance overall profitability.

In the first half of the year, the futures order volume increased by 14.9% year-on-year. By continuously optimizing the product mix and increasing the order volume of high-profit products such as BA surface, automotive decoration strips, and hard steel, the BA plate order volume increased by 34% year-on-year; the order volume of automotive decoration strips increased by 186%; the order volume of hard steel increased by 61%; the order volume of 400 series increased by 4.7%, ensuring the company's full-load production and enhancing the company's overall profitability.

Baosteel Desheng Achieves a 75% Reduction in Pollutant Emission per Ton of Steel Compared to Before the Transformation

Recently, Zhu Qiangqiang, Deputy Minister of Energy and Environmental Protection of Baosteel Desheng, introduced in an interview, "We have invested more than 1.4 billion yuan in ultra-low emission transformation, achieving a 75% reduction in pollutant emissions per ton of steel compared to before the transformation. By implementing the cascade utilization of wastewater and the utilization of solid waste resources, the company can now achieve 'zero wastewater discharge, no solid waste out of the factory'. Building a green, high-quality, and intelligent stainless steel industrial base is our goal."

Antam's Nickel Mineral Production and Sales Volume Decreased by 46.32% in the First Quarter

Jakarta - PT Aneka Tambang Tbk (Antam) explained its operational performance in the first quarter of 2024, including the production and sales of gold, nickel, bauxite, alumina, and silver commodities.

Syarif Faisal Alkadrie, head of the company's secretary department, said that the company is facing challenges in licensing, global geopolitical and economic conditions, and fluctuations in commodity prices. "In the first half of 2024, Antam is striving to maintain production and sales at the best level to complete the 2024 work plan," he said in the information disclosed to the public on Wednesday (17/7/2024).

In the first quarter of 2024, Antam's nickel ore production reached 4.19 million wet tons (wmt), a decrease of 39.53% compared to the same period last year. However, the second quarter of 2024's production increased by 90% compared to the first quarter of 2024. Nickel ore sales reached 3.36 million tons, a decrease of 46.32% compared to the first half of 2023, but the second quarter of 2024 sales increased by 135% compared to the first quarter of 2024.