MYSTEEL: Hebei to cut 13 mln t/y coking capacity by 2020
Source: Mysteel
Jul 17, 2020 17:00
The 18 coking companies, including mine- and steel mill-affiliated and independent plants, are mainly located in the cities of Tangshan, Handan and Shijiazhuang where most of the province’s steel and coking plants are based, Mysteel Global learnt.
As of mid-July, Hebei province boasted some 81 million t/y of coking capacity in operation, Mysteel’s survey showed. To reduce the impact that the elimination program will have on local coke supply, new and high-efficiency coking capacity will be commissioned – albeit in fewer plants – while the old plants are closed, Mysteel Global learnt.
Hebei Xinxing Energy Technology, for example, will commission a 7.15-metre coking project with 1.9 million t/y of capacity by the end of 2020 in Handan city. Xinxing Energy received approval to build the new project by “swapping” the 2.4 million t/y capacity from four aging and inefficient ovens. The four ovens are to be completely dismantled by no later than December 31 this year, according to a notification by Hebei’s Industry and Information Technology Department.
Hebei province is China’s largest steel production base and its second largest for coke production. However, as the province borders Beijing on three sides, the provincial government’s efforts to eliminate surplus steel and coking capacity – as well as its measures to control air pollution – are being closely monitored by the central government.
In June 2018, China’s State Council announced the inauguration of its “Blue Sky Safeguard” policy spanning 2018-2020 which, among other measures, required Hebei to cap steel capacity at 200 million t/y by 2020. Coking capacity in Hebei was also to be controlled to 40% of the province’s steel capacity the same year, indicating that Hebei will have to reduce its coking capacity to 80 million t/y in 2020, Mysteel Global understood.
Over January-May, Hebei produced 100.4 million tonnes of crude steel and 20.2 million tonnes of coke, 24.3% and 10.8% of China’s total respectively, according to data from the National Bureau of Statistics.
Written by Sean Xie, xiepy@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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