China: Henan Anyang to curb 4.3 metres coke oven capacity within 50%

As part of longstanding efforts to reduce local pollutant emissions, Anyang city government in Central China's Henan province plans to curtail the utilization of local coking ovens with the chamber height below 4.3 metres within 50% of their designed capacities, starting 1 Jul'20.

To implement the restriction, the city government has instructed townships, counties and districts under its jurisdiction to draft detailed plans by 20 Jun'20 to guarantee the stringent imposition of the curbing. But there is no update as to how long the measure will remain in effect.

Coking ovens at and below 4.3 metres in height has been categorized under "elimination", according to China's industrial restructuring guidelines issued in late Nov'19. Coking, as a major pollution source, has also been closely monitored and frequently curtailed under the "Blue Sky Safeguard" campaign over 2018-2020, both of which call for the related governing bodies in China to figure out means to curb the pollution from the coking plants.

Notably, Anyang boasts some 11.7 million tonnes (MnT) of annual coking capacity, among which nearly 5.2 MnT being from the 4.3-metre ovens. As of 4 Jun'20, the daily coke output from its local coking plants totaled 25,500 tonnes/day, and if the 50% cut is honored in Jul'20, about 5,610 tonnes/day of coking output will have to be cut off.

2020 is the last year for Beijing to review the progress that the cities in North China have made during the "Blue Sky Safeguard" campaign, but apparently Anyang has been under immense pressure, as it was recorded to be the most polluted city for 2019 according to the ranking by the country's Ministry of Ecology and Environment (MEE).

"Anyang's coking restriction, together with the ongoing curtailment in Shandong at the moment, will further tighten metallurgical coke supply to local steel mills in the regions", said a Shanghai-based analyst, and "steel mills in Shandong may have to look elsewhere as Anyang is no longer an option for alternative met coke supplies when the local coking plants have been curtailed", he elaborated.

Note: This article has been published under an article exchange agreement between CoalMint and Mysteel -- a China-centric insight and global metal markets intelligence providing company.

As of 4 Jun'20, Mysteel's price assessment of met coke with 12.5% ash, 0.7% sulphur and 60% CSR in Anyang hovered at its three-month high of USD 256.30/tonne (CNY 1,820/tonne) including the 13% VAT.