中文
China's top coke-producing base of Shanxi province witnessed a net decrease of 4.84 million tonnes per annum (Mtpa) in its coke production capacity in 2023, according to Fenwei's tracking data.
During the year, Shanxi added 18.19 Mtpa of coke capacity and eliminated 23.03 Mtpa. By the end of 2023, coke production capacity in operation amounted to 116.77 Mtpa across the province.
These capacities were mainly concentrated in Luliang, Changzhi and Yuncheng, combined accounting for 58.57% of Shanxi's total, according to Fenwei's database.
Meanwhile, there were 23.64 Mtpa of capacity under construction, down 15.61 Mtpa from 2022, and 6.36 Mtpa were planned to be built, down 22.25 Mtpa from a peak in 2019.
A total 87.64 Mtpa of coke production capacity being closed from 2019 to 2023, Fenwei's tracking data showed. In 2023, coke ovens with chamber height of 4.3 meters or below were completely phased out in Shanxi.
In the first quarter of this year, coke companies operated at a loss due to the continued decline in coke prices, resulting in a lack of enthusiasm for commissioning coke ovens. There was no new coke oven starting operation during this period.
However, Shanxi's coke production capacity is expected to post a net increase in 2024, as new coke ovens for capacity swap are completed and put into operation after the complete elimination of 4.3-meter coke ovens last year.
Over the recent years, the provincial government introduced a series of policies aimed at controlling and phasing out excess coking capacity in recent years.
In August 2019, the province asked local cities to develop their own action plans for reducing excess coke capacity. The total capacity to be phased out totaled 40.27 million tonnes, with the highest reduction in Linfen and Luliang at 10.9 million tonnes and 8.32 million tonnes respectively.
In March 2020, cities such as Taiyuan, Linfen, and Changzhi were asked to phase out coke ovens with a chamber height of 4.3 meters or below as per approved plans. 30 counties in Jinzhong, Luliang, Yuncheng, Xinzhou, and Yangquan were asked to fully eliminate such coke ovens. The province vowed to shut down more than 20 Mtpa of coke capacity before the start of the winter heating season in November 2020.
In April 2021, Shanxi set the goal for new cokemaking projects to achieve ultra-low emissions. All coke enterprises in the province were expected to complete the ultra-low emission transformation by the end of October 2023, except those listed for shutdown.
In June 2022, the provincial government said in a document to strictly prohibit new coking capacity. It also called for the scientific regulation of coke production and accelerated construction of large-scale coking upgrading projects under construction or planned to build. It also noted that coke ovens with chamber height of 4.3 meters or below and other ovens that did not meet the ultra-low emission standards were to be phased out in stages by the end of 2023.
In September 2023, Shanxi issued an urgent notice regarding the closure of 4.3-meter coke ovens, stating that all 4.3-meter coke ovens were to cease coal charging by October 20 and complete the shutdown by the end of the month.
Fenwei has conducted long-term tracking, analysis, and summarization of China's coking industry capacity changes. Our analysts provide regular updates on the latest capacity changes through bi-monthly reports.
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(Writing by Riley Liang Editing by Harry Huo)
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