Chinese government’s dual controls on energy consumption and energy intensity have affected 70% of the steel production lines in Jiangsu province. The impacted steel supply was around 3 million tons, which will be difficult to fully recover before October 7.

Although the dual controls will not lead to a shortage in the market in the short term, the normal production and market order were both seriously impacted.

In the long run, energy resources should be allocated well, and the energy output rate and energy efficiency should be increased substantially. By lowering the energy consumption intensity, adopting marketized and differentiated control measures, and using ways to energy saving will help to promote high-quality development of the steel industry.