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Strike "strip steel", remove the intermediate frequency f

Views: date:2017-12-15
Striking a diamond action has not yet ended, the discussion around whether the operation will create a supply gap has lasted for several months.
 
A report by the agency shows that many companies started to work on electric arc furnaces before the official request of the intermediate frequency furnace was shut down. In view of the overhaul of the long-time cut-off and newly commissioned electric arc furnace, the agency expects electric furnace capacity to contract until June 2017 and electric furnace capacity from May to June 2017 will be added. It is expected that electric arc furnace capacity will be very large On the supplement IF furnace capacity.
 
The so-called strip steel, refers to the scrap iron as raw material, after induction furnace melting, can not effectively control the composition and quality of steel or steel production, mainly for the construction of steel, is considered to have serious quality problems. In the strip steel remediation action was pushed to the cusp of IF furnace, induction furnace is divided according to the frequency of the type.
 
The EAF refers to the scrap as the main raw material, the use of current through the graphite electrode and the metal material between the high temperature arc, to heat, melt charge. Electric arc furnaces are mainly used to produce special steel and high-alloy steel and are now also used to produce plain steel. Compared with the blast furnace converter steelmaking, electric arc furnace with smelting equipment is simple, less investment, green and other advantages; compared to the intermediate frequency furnace, the electric arc furnace due to easy control, to adjust the composition and other reasons steelmaking quality is better.
 
However, limited by the shortage of electricity prices and scrap resources in China, electric arc furnace steelmaking is not the mainstream in China. A previous report by the agency mentioned that in the recent 20 years, the electric furnace steel in China has shown a downward trend overall, well below the world average of 29.3%. China's large investment in blast furnace converter process led to a substantial increase in converter steel production, while electric furnace steel only a small amount of investment, electric furnace steel lags far behind the growth rate of converter steel.
 
Intermediate frequency furnace shut down will lead to supply problems?
 
This time electric arc furnace steelmaking sparked hot in the industry, the reason behind is that the relevant departments of the steel strip of a firm blow so that all IF furnace will usher in the fate of the end.
 
According to the Guiding Catalog of Industrial Structure Adjustment (2011 Edition) (Amendment), the power frequency and medium frequency induction furnace used for strip steel, general carbon steel and stainless steel smelting are all in the phase-out category. However, in 5 Circular of the State Development and Reform Commission (No. 2547 of the Development and Reform Commission, No. 2547 issued by the State Development and Reform Commission), the five departments of the State Development and Reform Commission and other departments issued the Circular on Regulating the Production and Operation Order of the New and Reducing Production Capacity of Iron and Steel Corruption Illegally Issued in Early December 2016 For the production of ground steel frequency furnace, IF furnace.
 
Intermediate frequency furnace is not yet given a definite conclusion, but the IF furnace business has been less optimistic. Earlier, insiders told Surging News that "the steel strip in the industry has hit almost the same level, and even in the provinces that did not crack down on notifications, most of them chose to shut down themselves."
 
Analysts had also said to surging news that "the IF is now at a new year and the intermediate frequency furnace stops and the MFI companies are waiting and watching for further decisions. The IF furnace will not be totally dismantled now because IF Furnace steel production enterprises, the current lack of authority or saying.
 
With regard to the production capacity of IF furnaces, the industry is currently generally believed to be about 100 million tons, while the actual production output in 2016 is about 50 million tons. Intermediate frequency furnace for the production of building materials basically shut down if there are different opinions on the impact of the market.
 
In an interview with Surging News, analysts said: "In terms of the total steel production capacity, there is an excess now. Even if the IF furnace is completely shut down, the long process capacity as well as the existing EAF can basically make up for the IF furnaces This gap should not cause a supply shortage. "
 
Analysts also stressed that "if the intermediate frequency furnace capacity shut down, and long-term steel mill has not had time to increase production supply, may result in short-term supply constraints.But put aside, for example, a few months time , Long-term production can be upgraded to make up for IF furnace. "
 
Prior to the vice minister of Ministry of Industry Xu Lejiang said outside, "bad money to go, good money up, will not cause supply problems."
 
Electric arc furnace make up for the risk
 
It is noteworthy that, even if the intermediate frequency furnace to leave to the arc furnace to leave room, the electric arc furnace is not able to be easily launched.
 
A large domestic steel prices person told surging news, "Electric arc furnace also need approval documents, not to build built.In addition, EAF steelmaking costs, if you replace the intermediate frequency furnace smelting steel, the basic loss." That is to say, even if the arc furnace is a standard capacity, but based on the current steel industry strictly control the new capacity of the situation, the electric arc furnace to expand production capacity is unlikely.
 
Analysts pointed out that "If IF furnace shut down because it is due to backward production capacity, in accordance with the provisions of the closure of backward production capacity is not allowed to replace the new production capacity." Analysts believe that in the current context of efforts to capacity, if the business Because of the closure of IF furnace and the new or converted IF furnace, may face the risk of deprecating policy red line. "Whether it is building a blast furnace, building a converter or an electric furnace, it is very sensitive once it involves the project of iron-steelmaking and steelmaking."
 
However, another hint is mentioned in the agency's report. Although the production units of general carbon steel have the procedures of electric arc furnace, most of them use intermediate frequency furnace to produce and stop arc furnace. As affected by the plant site and the high cost of electric arc furnace, some electric arc furnace manufacturers have removed the electric arc furnace after the furnace, freeing the venue to install IF furnace. Now IF furnace shut down after the demolition, re-install the electric arc furnace, does not rule out the new equipment capacity is greater than the original capacity.
 
The agency's report also mentions that, through the manufacturers of major domestic EAF equipment, the orders for the major EAF plants have been put on schedule.
 
In an interview with Surging News, analysts said, "Some small mills actually use intermediate frequency furnaces after obtaining a production license with an electric arc furnace." Such a company's share of IF furnace companies, analysts said, "is specific The proportion of no statistics, the proportion should be quite high. "
 
Analysts also mentioned that "electric arc furnace production units, all the IF furnace removed, not to enable the electric arc furnace can only be completely discontinued, or steal the continued use of intermediate frequency furnace production."
 
The aforementioned large-scale steel-go-getters argue that "turning off MF furnaces and continuing to produce electric arc furnaces is a rare but rare occurrence, and it is very risky to be concerned with local leaders."
 
Analysts said, "Intermediate frequency furnace steel mills, once shut down, there is no steel, rolling behind the back of the line will be idle, facing the problem of survival." However, shutting down the intermediate frequency furnace and allowed between the other EAF, Still a clear policy. "Is it not allowed to dismantle the IF furnace built electric arc furnace? If you can replace, then he no problem .If IF furnace is illegal, then ordered to dismantle after construction, the investment of steel mills, and face penalties, this Policy risks must be addressed