SHANGHAI China plans to phase out 1.93 million tonnes per year of obsolete ferroalloys capacity this year, with silicomanganese and electrolytic manganese smelters likely to be the hardest hit.
China aims to remove 10 million tonnes per year of obsolete capacity, Zhang Zengchan, assistant chairman of the China Ferroalloys Industry Association (CFIA), told AMM sister publication Metal Bulletin, noting that the closures apply to small furnaces operating below 6,300 kilovolt-amperes.
The ferroalloys sectorincluding electrolytic manganese, manganese residue rich and nickel pig ironcurrently has a capacity of 40 million to 50 million tonnes per year.
The Ministry of Industry and Information Technology has asked more than 300 smelters to close by the end of September.
The capacity is likely to have limited effect on the market, as most of these smelters have already shut due to weak market conditions, an analyst in Shanghai said.
China phased out 2.91 million tonnes per year of outdated ferroalloys capacity last year, on top of 2.11 million tonnes per year in 2011.
A version of this article was first published in AMM sister publication Metal Bulletin.