China's coke production capacity experienced a moderate growth in 2023 and is expected to maintain the upward trend this year, as new additions are forecast to exceed closed capacity.
Last year, Shanxi and Inner Mongolia made great strides in eliminating coke capacity, but less-than-expected operation of newly-added capacity led to a relatively low growth rate in the expansion of coke capacity.
According to Fenwei's tracking data, a total of 44.08 million tonnes per annum (Mtpa) of coke production capacity was put into operation last year in China, while 21.08 Mtpa of capacity was closed, indicating a net capacity increment of 8.06 Mtpa.
By the end of 2023, China had a total 562.29 Mtpa of coke production capacity in operation, including 47.84 Mtpa of capacity with oven chamber height at 4.3 meters or below.
Meanwhile, there were 13.14 Mtpa of capacity in drying and heating stage, 68.16 Mtpa under construction and 33.21 Mtpa planned to build.
In the past year, China's major cokemaking provinces and regions introduced policies to shut down outdated production facilities.
Shanxi, the leading coke-producing province in China, had fully phased out coke ovens with chamber height of 4.3 meters or below as of the end of 2023.
Inner Mongolia began a targeted campaign to phase out coke ovens with chamber height of the same last year, but the closures were not finalized. The remaining capacity is anticipated to be shut down by 2024.
Shaanxi is also forecast to accelerate the elimination of 4.3-meter coke ovens this year, according to an action plan on air pollution issued by the Ministry of Ecology and Environment in September 2023.
In addition, these capacities for the swap of newly-added coke ovens will be phased out gradually as the new ones are commissioned.
A group of cokemaking projects that are fully compliant and progressing rapidly are set to begin operations in 2024, as per Fenwei's coking capacity database. The newly added capacity will surpass that of to-be-closed, indicating an extended growth in China's total cokemaking capacity this year.
Fenwei has conducted long-term tracking, analysis, and summarization of China's coking industry capacity changes. Our analysts provide regular updates on the latest capacity changes through bi-monthly reports.
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(Writing by Riley Liang Editing by Harry Huo)
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