Eastern China's Shandong province requires local coke production not to exceed 30.7 million tonnes this year in an effort to control coal consumption, according to a provincial document issued on May 21.

The local government lists 36 coking plants whose coke ovens meet relevant standards, with a combined capacity of 44.2 million tonnes per annum (Mtpa). Producers on the list are allowed to produce normally and their capacity can be replaced into new projects.

Local producers not on the list are no longer allowed to produce and any projects under construction should stop immediately.

As involved with listed companies that have approved public fund-raising and implemented alternatives to coal consumption, the government allows three companies to postpone their elimination to the end of 2021, but they are excluded on the list and their capacity are not allowed to be replaced.

With a total capacity of these 39 companies at 47.1 Mtpa, the government plans to control their annual production for 2020 within 30.7 million tonnes.

By the end of April, Shandong had a total designed coke capacity of 46.85 Mtpa, of which 3.9 Mtpa of net capacity will be eliminated (5.1 Mtpa to be phased out and 1.2 Mtpa to be commissioned). By end-2020, Shandong's coke capacity will further decline to 42.95 Mtpa.

In 2019, Shandong produced 49.21 million tonnes of the steelmaking material.

(Writing by Alex Guo  Editing by Tammy Yang)
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