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Ten iron and steel enterprises in Xinjiang stopped production for 7 days (list attached)
According to the health operation group meeting of Xinjiang iron and steel industry held in Urumqi in mid May 2022, the final production suspension and reduction plan was determined through joint communication among the steel mills in Xinjiang: it was decided that the start time of production suspension and restriction was adjusted to June 1, 2022, and the production suspension time was uniformly adjusted to 7 days, and the corresponding adjustment was made later according to the situation. The production suspension and restriction plan and inspection and supervision plan are hereby formulated as follows:
1、 Production suspension and restriction plan
2、 Inspection and supervision plan for production suspension and restriction
1. Set up an inspection and supervision group for stopping and limiting production to implement the stopping and limiting production
Set up a four group inspection and supervision group to inspect the enterprises with production suspension and restriction. The inspection time is divided into three stages.
On the day of production suspension and restriction in the first stage, carry out on-site inspection and implementation, and report the pictures and materials of production suspension to the leader of Kunlun Sales Department, the person in charge appointed by Kunlun (Kunlun was the duty unit of the coordination meeting of the steel plant in June).
Random inspection shall be conducted for 1-2 times during the period of production suspension and restriction in the second stage.
In the third stage, the supervised enterprise shall notify the supervision team one day before the resumption of production, and conduct on-site confirmation and photo notification again.
2. Stop and limit production time
The time for stopping and limiting production is June 1. Each inspection and supervision group arrives at the supervised enterprise on June 1 and determines the time for resuming production according to the specific time of the enterprise's production stop on June 1 (for example, if the production stop time is 7 days and the specific time of production stop is 17:00 on June 1, the time for resuming production shall not be earlier than 17:00 on June 8).
3. Form a temporary inspection team to carry out spot check
The temporary inspection team of the health operation team is led by the leaders of the Sales Department of Bagang and composed of the leaders of Kunlun, Kunyu and Minxin sales departments. The temporary inspection team has the right to spot check any enterprise and conduct random spot check on the enterprises whose production is stopped or limited at any time.
4. Inspection team composition scheme
The first inspection team, led by Bagang, is responsible for the supervision of Kunlun, Da'an and Jinte.
The second inspection team, led by Kunlun, is responsible for the supervision of Bazhou and Yigang.
The third inspection team, led by Kunyu, is responsible for the supervision of Bagang and Minxin.
The fourth inspection team, led by Minxin, is responsible for the supervision of XINANTE and Kunyu.
5. Since Da'an iron and Steel Co., Ltd. does not stop production, all steel mills in Xinjiang jointly supervise that Da'an resources are not sold in the territory. If any problem is found, it shall be immediately reported to the health operation team and coordinated and communicated by the leaders of Bagang.
6. On May 31, 2022, the health operation team met in the conference room of Kunyu Urumqi office to hand over the shift work in June and determine the self-discipline plan.
7. Kunlun iron and steel (Kunlun was the duty unit of the coordination meeting of the steel plant in June) arranged one person to form a shutdown briefing. Each team sent the shutdown information to the mailbox of the person in charge of Kunlun, and then sorted it out and reported it to the relevant leaders.
8. The healthy operation team of Xinjiang iron and steel timely tracked, studied and judged the improvement of supply and demand and market prices in the domestic market due to the suspension and restriction of production, and further discussed whether to extend the suspension and restriction of production according to the market conditions.
Compared with the preliminary plan, the final plan for stopping and limiting production of major steel plants in Xinjiang not only delayed the stopping time, but also adjusted the stopping time. The stopping time of each steel plant was shortened from 10-15 days to 7 days. According to the author's rough estimation, the final plan is expected to reduce the total output of construction steel by 126700 tons, about 115800 tons compared with the preliminary plan. For the current total inventory of 1.2 million tons of construction steel in Xinjiang, the impact of this shutdown on the current market supply and demand situation is relatively limited, and the possibility of prolonging the shutdown and reduction time of the steel plant is not ruled out.
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