Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s Hebei province plans to shut 20 less than 1,000cubic meters of blast furnaces in 2021 to speed up the elimination of inefficient and excess steel capacity and comprehensively control air pollution in the province. Twenty converters under 100mt capacity will also be shut down this year, announced provincial authorities in a press conference.


Besides, five coal-fired generating units of key polluting companies including Handan Iron and Steel, Tangshan Huaxi Iron and Steel and Xingtai Iron and Steel will be relocated during the year.


The province will control its total coal consumption and coordinate on carbon peaking and achieving carbon neutrality by optimizing its energy structure. Authorities will focus on coal consumption reduction and substitution to achieve a steady decrease in consumption. It will also emphasise on developing non-fossil fuels including photovoltaics, hydrogen energy and wind power, and promote the use of non-fossil fuels for the increase in energy consumption.


Ultra-low emission transformation will remain a priority and the province will encourage the conversion of long-process steel to short-process. It will stress effectively reducing pollutant emissions and govern pollution and carbon reduction efforts in power, steel and building materials industries. Authorities will also monitor and control the quality of coal used in power and iron and steel plants.


Hebei province will also accelerate the construction of large infrastructure including mining enterprises, logistics parks, and the development of major ports and dedicated rail lines with an annual bulk cargo transportation volume exceeding 1.5mn mt. Around 19 dedicated rai lines will be completed and put into operation in 2021. Currently, 18 dedicated lines such as Jingye Iron and Steel and Shigang have started. The province will also promote the construction of inland dry ports and increase the supply of direct cargo to ports.

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