China Finds Aluminum, Steel Producers Not Limiting Output in Winter

China has found that five producers -- including aluminum and steel producers -- have not limited output or shut to comply with the government's winter emissions cuts running from November 2017 to March 2018, the Ministry of Environmental Protection said in a circular Tuesday.

Taiyuan East Aluminum in Taiyuan City, Shanxi Province, Northwest China was asked to shut a total of 44 furnaces in winter due to the local pollution alert, but inspectors on a spot check found that it just shut 14 furnaces, the ministry said.

Taiyuan East has refined aluminum output capacity of 100,000 mt/year and aluminum rod production capacity of 50,000 mt/year, with plans to build one 600,000 mt/year high precision aluminum products plant in the 13th Five Year Plan period (2016-20), producer data showed.

Meanwhile, the ministry said its inspection unit found Henan Chengxi Steel Structure at Kaifeng City, Henan Province, running its spraying and drying facilities in the open air, without shutting as required in winter. Chengxi has steel grid and structure output capacity of 40,000 mt/year, producer data showed.

The Chinese aluminum sector began output cuts November 15 to reduce emissions in the winter heat season (November 15, 2017, to March 15, 2018), with the ministry set to conduct inspections at the producers by January, 2018.

To ensure that Chinese aluminum producers own pollutant emission licenses and to tackle unlicensed emissions, the ministry will carry out spot checks up to January 2018, as well as assess producers' output cuts, by checking their power usage data through the power departments, the ministry said.

This winter, Shandong Province will cut over 30% of its aluminum producers' output (based on the electrolytic cell volume), and trim 30% of its alumina producers' output, data from the Shandong province government showed, with assessment of aluminum producers' emission licenses to be done before the end of December 2017. Those failing to meet the rules will be asked to shut.

State run metals consultancy Beijing Antaike forecast China's national aluminum production growth in 2018 to slow, with output of 38 million mt next year, up just 5.6%. It forecast Chinese refined aluminum output in 2017 to be 36 million mt, up 10.3%.