Displaying items by tag: Smog

China: The city of Tangshan ordered cement and steel plants to shut down for five days to prevent pollution. The directive followed a forecast of heavy smog in mid-July 2018, according to a source quoted by Reuters. Tangshan, an industrial city, is located in the northeast of Hebei province.

China has admitted once again that its cement industry is plagued by over-capacity. State news agency Xinhua came clean this week as it reported that 103 production lines have been closed for the winter months.

The principal reason given for the winter shutdown was prevention of air pollution with resolution of overcapacity presented as a handy secondary. With long term plans in place to reduce overcapacity through industry mergers, demolitions and bans on new plants this is one more offshoot from the very public problems that smog and industrial pollution has given the Chinese government.

The policy follows a similar shutdown in China's far-western state of Xinjian that has been implemented since 1 November 2014. Xinjian is away from China's main cement production heartland in the south and east of the country. The idea here is to stagger winter production from cement kilns that use coal to avoid flue gas emissions rising when coal consumption for heating also rises. Since cement consumption by the construction industry is lower in the winter, a stoppage at this time of year should affect the cement producers less. Proposals have also been made to include Inner Mongolia and Hebei into the scheme.

The three provinces in question now - Heilongjiang, Liaoning and Jilin – represent 80Mt/yr or 6% of China's total cement production capacity from 28 cement plants, according to the Global Cement Directory 2014. This is broadly in line with the proportion of national population the three provinces hold.

Back in 2012 the National Development and Reform Commission suggested that national cement capacity utilisation was 69%. Local media in China have been reporting that currently Xinjian uses 60%. Western commentators reckon that China uses only 50% of the cement industry's total production capacity. By contrast India, the world's second biggest cement producer after China, has been lamenting this year that capacity utilisation had fallen below 70%. Worldwide, excluding China, capacity utilisation rates have been estimated to be just below 70% in 2014.

Plummeting particulate matter counts are great for Beijing's cyclists and their continued goodwill towards the government. However, the implications are bad for the producers who are affected and the associated industries. As one Chinese equipment manufacturer commented on Global Cement's LinkedIn Group, "...many small manufacturers of cement plants in China will go bankrupt." Unfortunately this too is also in line with the country's strategy to reign in its cement industry through industry consolidation. It may yet turn out sunny for the state planners... once the smog clears.

China: China has ordered several cement plants located in the northern provinces to shut for four months, starting on 1 December 2014, to reduce over-capacity and curb air pollution during the winter months, according to state news agency Xinhua.

The move, which will affect 103 production lines in the three Provinces of Heilongjiang, Liaoning and Jilin, is set to hit coal consumption and limit a rebound in domestic prices.

The China Cement Association and the three provincial governments jointly issued the order. Persistent over-capacity has dogged the sector for years, with northern China using only about half of its total production capacity.

The northern provinces, including Hebei, are a major source of industrial pollutants blamed for a toxic smog that often spreads to neighbouring regions like Beijing. Kong Xiangzhong, vice president of the China Cement Association, was quoted as saying the winter stoppage would greatly curb air pollution, as fuel consumption increases markedly when temperatures drop. Total cement output in northern China, including Inner Mongolia, hovers around 120Mt in the winter months and requires about 20Mt of coal. Fuel consumption falls to just 16Mt in summer, according to Xiangzhong.

The suspension in Xinjiang is expected to reduce coal consumption by about 1Mt and help increase plant utilisation rates to 75%, from the current 60%, according to local media reports. It takes about 200kg of coal to produce 1t of cement, according to the World Coal Association.

Despite efforts to cut output, China's cement production rose 9.6% to 2.41Bnt in 2013 from a year earlier, while total capacity has surged to more than 3.2Bnt/yr, according to data from the cement association.