Fastmarkets takes a look at how producers of ferro-alloys, metals and steel in the country plan to transition to a low-carbon environment from several perspectives – the consumption of raw materials and energy, production technique, transportation and financing – following the announcement of various action plans in October to achieve that goal.
The production of ferro-alloys is considered as energy intensive due to its heavy reliance on electricity during the smelting process. For instance, producing one tonne of ferro-silicon typically requires 8,000-9,000 kWh of electricity in China, while around 3,800 kWh/t of electricity is needed to produce a tonne of silico-manganese, according to market participants.
Measures to lower electricity consumption by this sector have been primarily based on policy. No new capacity will be approved from 2020, market participants told Fastmarkets.
Production heartlands such as Inner Mongolia, Ningxia and Guangxi autonomous regions have set stricter measures for...