Domestic suddenly issued documents requiring power and production restriction, and the steel price rose sharply, showing an upward trend.

The price of the product has been greatly reduced. Affected products include hex bolts, hex nuts, screws, flange nuts and flange bolts.

The sudden news of production restriction in Guangxi triggered a sharp rise in steel, ferroalloy and other varieties. Today, ferrosilicon and manganese silicon

futures both rose by the limit, of which ferrosilicon hit a new high since its listing;

Thread and hot coil rise exceeds 3%.  It is reported that this production restriction involves many high energy consuming industries such as steel, ferroalloy and

cement.Affected products such as Hex bolt, Hex nut, flange nut, flange bolt, screw.

Due to strengthening the dual control of energy consumption, Guangxi implements the production restriction requirements for local iron and steel enterprises.

Among them, Liugang, Guangxi Shenglong and Guangxi Guigang undertake the task of reducing crude steel in 2021 and reduce the output by 20% on the basis

of the production scheduling plan in September.

In addition, the output of Yongda, Deyuan, Guifeng metal, southwest special steel and Guiping steel in September shall not exceed 70% of the average monthly

output in the first half of 2021.

For ferroalloys, the power load in September mentioned in the document shall not exceed 70% of the average monthly power load in the first half of 2021.

Guangxi is the third largest province in silicon and manganese production, and the production restriction document has a great impact on silicon and

manganese.

According to the quantitative estimation of silicon manganese production enterprises, the average monthly output of silicon manganese plants facing production

restriction in September was 22000 tons in the first half of the year, the allowable output in September was 11000 tons, and all the rest were shut down.

Compared with Guangxi, the average monthly output in the first half of the year was 126700 tons, a month on month decrease of 91%, i.e. 115700 tons, with an

impact of 13% on the average monthly output in the first half of the year.

Analysts believe that the strict power restriction measures introduced by Guangxi, the main producer of silicon and manganese, are the core driving force of the

sharp rise in the market.

It is reported that relevant institutions in Guangxi released a list of enterprises that reduced production capacity in September. High power load enterprises are

under comprehensive control and cover a wide range of industries. In the ferroalloy industry, 91 enterprises faced capacity reduction in September, of which

90% were subject to 0 power load overload.