Energy Insider: Eight People Killed in Henan Coal Mine; Tianjin Shuts Steel Mills to Cut Pollution
In today’s Caixin energy news wrap: Another deadly coal mine incident kills eight miners in Henan, sparking safety concerns; port city Tianjin closes three steel mills to reduce emissions as steel prices remain high amid strong demand; disruptions caused by the pandemic make shipping containers highly sought.
No short-term relief expected for steel prices
Steel prices are expected to remain at high levels as supply remains tight amid rising demand, industry information provider mysteel.com reported. Demand for steel has remained strong this month, partly reflecting pent-up demand. But the coming rainy season in Southern China may slow purchases. Steel prices are likely to hover at high levels over the coming week, the report said.
Tianjin to shut down three steel mills to cut pollution
Northern China’s port city Tianjin announced the closure of three steel companies as part of efforts to reduce emissions, state broadcaster CCTV reported. The companies to be closed include Tianjin Tianzhong Giant Heavy Industry Co. Ltd., Tianjin Tianfeng Steel Co. Ltd. and Tianjin Metallurgy Group Zhasan Steel Co. Ltd. Meanwhile, the four remaining steel mills in the city were ordered to carry out comprehensive transformations to achieve ultra-low emissions.
Eight people killed in coal mine in central China
Eight people were confirmed dead in a coal mine disaster in central China's Henan Province, local authorities said Monday. The incident occurred Friday afternoon in a colliery operated by Hebi Coal and Electric Co. Ltd. The miners died from suffocation as they were buried under coal, officials said. A series of deadly incidents this year has raised concerns over the country’s mining safety and is expected to drive up investment in mining safety equipment.
Auto industry under pressure of short material supplies
Potential auto buyers are likely to see fewer promotions and price cuts in June compared with previous years even though auto dealers are under similar pressures to expand sales in the last month of the second quarter. This year’s broad supply shortages of semiconductor chips, copper, steel and other car-making materials have boosted costs for the auto industry, making manufacturers more reluctant to reduce prices, according to the China Automobile Dealers Association. A good portion of new and used cars, particularly SUVs, have recorded price hikes in May.
XCMG to invest $62.5 million in heavy machinery subsidiary
Xuzhou Construction Machinery Group (XCMG) (000425.SZ) plans to invest 400 million yuan ($62.5 million) in its wholly owned subsidiary XCMG Heavy Machinery, the company said Sunday. The investment will mainly support the subsidiary to improve high-end intelligent manufacturing capacity.
Traders struggle to find shipping containers
The global shipping industry is experiencing two extremes at once — labor shortages and container shortages. Pandemic outbreaks are causing containers to pile up in ports in many countries. In Asia, shipping is booming, but containers are hard to come by, resulting in a sharp rise in container prices. On some international routes, container prices have increased nearly tenfold, CCTV reported.
Rising commodity prices press manufacturing changes
Continued surges of commodity prices this year are pushing manufacturers to speed up digital transformations to counter narrowing profits. An official at China’s Ministry of Industry and Information Technology said the country will strengthen support for changes by manufacturers, especially micro, small and medium-sized enterprises.
China-Laos railway to open by year-end
The China-Laos Railway’s Jingzhai Tunnel was completed, China State Railway Group Co. Ltd. said. All 167 tunnels along the China-Laos Railway have been drilled through, laying a solid foundation for operation by the end of the year. Exceeding 1,000 kilometers in length, the railway begins in Kunming in Yunnan province and runs south to Vientiane, the capital of Laos.
Contact editors Han Wei (email@example.com) and Bob Simison (firstname.lastname@example.org)
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