NDRC Issues Edict to Restrict New Nickel-Chromium-Iron Alloy Projects

SHANGHAI Aug.31 (CBI China)--The National Development & Reform Commission (NDRC) issued an emergency edict forbidding the use of outdated blast furnaces in the production of any products.  According to the edict, the government will take the following measures:

    1) Outdated blast furnaces will be eliminated within a set period.  Relevant facilities will be dismantled and production sites leveled.

    2) Construction of ferroalloy furnaces will be prohibited.  Government departments responsible for investment will not approve any new expansion projects, and financial institutions will not provide loans for any such projects.  Regional governments will inspect on-going projects carefully.

    3) New nickel - chromium - iron blast furnaces will have effective furnace volume of 1,000 m3 or above, and be equipped with supporting facilities for pollution treatment and comprehensive utilization of resources.  Energy and fresh water consumption will meet the national entry standards for iron smelting furnaces.  The existing nickel - chromium - iron blast furnaces with volumes below 300 m3 will be phased out within the same set period prescribed for iron smelting furnaces.

    4) Ferroalloy blast furnaces will only be used to produce ferroalloy.

    CBI believes smelting capacities have created supply surplus in most ferrous and non-ferrous smelting sectors.  In addition, relevant local governments have exacerbated the problem by not aggressively eliminating outdated capacities or forbidding construction of new expansion projects.