At present, environmental protection limit production has had an impact on the operation rate of steel enterprises. Testing data show that in October the country hundreds of small and medium-sized steel enterprises from the 90% high blast furnace operating rate fell to 81%, record lows for the year, that the future supply side will remain in the state of contraction. Policy side said, 2017-2018 years of heating season, the northern "2+26" city environmental protection limit production of 50% minimum requirements. From the Environmental Protection Department understands, this is the steel industry for the first time to implement large-scale, long-term limit production.
Analysts said that if the air quality continues to deteriorate, efforts to limit production to upgrade the industry supply downward trend will be further clarified, the steel market will show a tight balance pattern. The environmental restriction is not a gust of sports type limited production supervision, but has a strong sustainability. Li Xinchuang Metallurgical Industry Planning Research Institute pointed out that the "Beijing Tianjin Hebei regional environmental capacity to support the region is currently a steel production capacity, as long as the haze day does not go, Xianchan policy will continue, even more stringent policies, guide the region of Beijing Tianjin Hebei Iron and steel production capacity out, until the environmental quality improvement."