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China's Yinchuan names 27 metal producers told to shut for winter

Hong Kong — Yinchuan in northwest China's Ningxia Hui Autonomous Region, a key magnesium and ferroalloy production base, has released a list of metal producers asked to shut from November 27 to March 10 to cut emissions, the Yinchuan branch of the Ministry of Industry and Information Technology said Tuesday.

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A total of 27 producers in the region's nonferrous metal, ferroalloy, diecast, cement and silicon carbibe sectors were asked to shut for winter, of which 23 have already done so, the ministry said in a circular.

Another has agreed to shut within days and three diecasters to limit or halt output in the period, it added.

The producers asked to shut include 100,000 mt/year magnesium producer Ningxia Dongyi Magnesium, a subsidiary of Dongyi Group, which will shut two 25,500 kva furnaces in winter, MIIT said.

Ferrosilicon producer Yinchuan Metallurgical Branch of Tianjing Electric Power Development Group will shut three 12,500 kva furnaces, two 15,000 kva furnaces and one 31,500 kva furnace, while ferrosilicon, ferromanganese and ferrochrome producer Ningxia Boli Smelting Industry will shut two 12,500 kva furnaces, it said.

Lead producer Ningxia Tianma Smelting Industry was asked to shut its 100,000 mt/year refined lead production line.

Ningxia will also ban output capacity expansions in its aluminum, ferralloy and steel sectors in the 13th Five Year Pland period (2016-20) to ease capacity surplus, but encourage development in the magnesium, manganese metal and rare earth metal sectors to build an industry chain of raw material, primary processing and deep processing capacity to get higher product values, the ministry said.

The autonomous region will cap its ferroalloy and refined aluminum output capacity at 4 million mt/year and 1.9 million mt/year respectively in 2020, down from 3.8 million mt/year and 1.25 million mt/year in 2015. Its steel output capacity will be capped at 6.4 million mt/year by 2020, up from 4 million mt/year in 2015, MIIT said.

Ningxia's manganese metal capacity is set to more than double to 1.1 million mt/year in 2020 from 500,000 mt/year in 2015 and its magnesium output capacity to rise to 300,000 mt/year in 2020 from 272,000 mt/year in 2015.

The region expects its manganese metal capacity to account for over 50% of the globe total by 2020 and its magnesium and ferroalloy production capacities to account for 20% and 10% respectively of China's total by then, MIIT said.

--Joshua Leung,
--Edited by Wendy Wells,