Henan Increases Energy Saving and Emission Reduction

Near the end of October, in order to complete the "Eleventh Five-Year" energy-saving emission reduction tasks, Henan Province has once again stepped up efforts to cut power cuts for high-energy-consuming enterprises in the province. It is understood that the local production capacity of electrolytic aluminum production has increased significantly from the previous period, and most companies shut down their production capacity by more than 50%.
At the beginning of October, Henan Province reported that the local government required electrolytic aluminum enterprises to reduce 180,000 tons of news within the next three months. The simple calculation involves a production capacity of approximately 720,000 tons/year. By the middle of the year, Jiaozuo Wanfang Aluminum issued an announcement announcing a production cut of 140,000 tons/year. It is understood that there is a trend of further upgrading of the local limited power supply. The government requires the company to reduce production by about 1/3, and the estimated shutdown capacity will exceed 1 million tons/year, and the estimated output will exceed 200,000 tons.
According to the latest information, Henan's pressure to limit production of electrolytic aluminum has further increased. The rate at which companies are required to reduce production has widened to 2/3 to 1/2, and aluminum plants have also begun to actively cooperate with energy conservation and emission reductions. Adjust the production plan and reduce production. Henan electrolytic aluminum production capacity in the 3rd quarter is about 4 million tons/year, and according to the latest production cut-off plan is expected to affect the production capacity of more than 2 million tons/year (about 10% of the national total production capacity), Henan will be affected by energy conservation and emission reduction throughout the year. Production is expected to exceed 400,000 tons.
At the same time, judging from the current situation of energy-saving and emission-reduction completion, the probability of remission of the limited-voltage force before the end of the year is relatively small, and the possibility of further increase is not excluded. Shanghai Nonferrous Network believes that with the completion of the “Eleventh Five-Year Plan” energy saving and emission reduction tasks, if the electrolytic aluminum production can still maintain profitability at that time, the aluminum plant is expected to resume production before and after the end of the year. Taking into account the relatively large reduction in output, the time for resumption of production will be longer. It is expected that the output of electrolytic aluminum in Henan Province after the Spring Festival is expected to recover slightly. In the meantime, the resumption of production of electrolytic aluminum will consume a large amount of aluminum water and will further reduce the output of local aluminum. From the perspective of the supply of electrolytic aluminum, January will be the low point of aluminum production in Henan next year.

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