October 16, 2008
NDRC prohibits turning obsolete BF for ferroalloy production
China's top planning body National Development and Reform Commission has asked provinces in an urgent notice to wash out obsolete iron making blast furnaces and prevent them to turn to ferroalloy productions. Besides, transfer of obsolete capacities and production shifts of obsolete manufacturing equipments will also be prohibited.
Currently China eyes severe overcapacity in ferroalloy industry, but in the meanwhile some below 300 cubic meters iron making blast furnaces turn to ferroalloy productions blindly to avoid being phased out. There are over 300 blast furnaces of this kind, which will add ferroalloy capacity of over 10 million tonnes and worsen ferroalloy overcapacity if they all switch to ferroalloy productions. Moreover, many nickel chromium blast furnaces are set up or rebuilt in the name of ferroalloy projects. These furnaces are backwardly equipped with heavy emissions and low energy utilization efficiency. Besides, in substance they are iron making blast furnaces, thus construction in terms of ferroalloy projects equals to the lower of industry admittance.
NDRC said this would deteriorate ferroalloy overcapacity, impact ferroalloy producers, hinder the elimination of obsolete iron making blast furnaces and go against the structural readjustment and macro-control of steel and ferroalloy industry.
The body urged obsolete capacity elimination on time and forbad new ferroalloy blast furnaces constructions. Below 300 cubic meters nickel chromium iron making blast furnaces will be washed out before the deadline for iron making blast furnaces and newly built ones will be managed strictly as iron making projects. In addition, re inspections will be necessary if equipments turn to pig iron making. Below 1000 cubic meters blast furnaces that are built after Aug of 2005 will be shut down providing they go out of line with industrial policies; those below 300 cubic meters will be eliminated.
NDRC asked all the provinces to carefully clear ferroalloy blast furnaces and report the results to Department of Industrial Policies under NDRC before late Sep.
(Sourced from MySteel.net)
