The announcement on December 20 states that Inner Mongolia pledges to lower its GDP unit energy consumption by 3% in accordance with the country’s 14th Five-Year Plan.
To achieve this target, Inner Mongolia proposes to eliminate all electric-arc furnaces (EAFs) under 25,000 kVA and all EAFs under 30,000 kVA by 2021. Additionally, starting from January 1, 2021, smelters in some industries including ferro-alloy, calcium carbide and cement clinker, will no longer be allowed to increase their capacities.
Despite the lack of final confirmation and specific implementation of these proposed measures, Fastmarkets examines the possible impact of them on relevant ferro-alloy production in the region.
Inner Mongolia produces approximately 300,000 tonnes per month of high-carbon ferro-chrome, accounting for more than half of the total domestic output, market participants said.
In fact, one industry source told Fastmarkets that Inner Mongolia has a capacity of around 690,000...