Inner Mongolia intends to control total capacity of steel and refined aluminium industries

Published: Dec 29, 2020 16:17 (GMT+8)
Recently, the Development and Reform Commission of Inner Mongolia Autonomous Region, in conjunction with the Industry and Information Technology Bureau and the Energy Bureau, drafted the Several Measures for Ensuring Energy Consumption Control Targets in the "14th Five-Year Plan" (draft for comments).

SHANGHAI, Dec 29 (SMM)—Recently, the Development and Reform Commission of Inner Mongolia Autonomous Region, in conjunction with the Industry and Information Technology Bureau and the Energy Bureau, drafted the Several Measures for Ensuring Energy Consumption Control Targets in the "14th Five-Year Plan" (draft for comments). 

The draft requires to accelerate energy-saving technological transformation in key high-energy-consuming industries. From 2021 to 2023, focus should be on transformation of key energy-consuming enterprises in high-energy-consuming industries such as thermal power, iron and steel, aluminium, ferroalloy, calcium carbide, copper, lead, zinc, chemical and building materials, and unit product energy consumption after transformation better reach national standards. Comprehensively promote comprehensive energy-saving transformation of coal-fired power plants. All leagues and cities should complete all transformation tasks at least in accordance with the progress of 40%, 40%, and 20%. Increase support for energy-saving technological transformation projects.

Control capacity of some high-energy-consuming industries. From January 1, 2021, new capacity projects of ferroalloys, calcium carbide, calcium carbide method polyvinyl chloride (PVC), and cement (clinker) will no longer be approved. All projects that have been approved before the end of 2020 but have not yet started construction will be suspended or postponed. Total capacity of steel and refined aluminium industries will be controlled. Except for projects that have completed or are in the process of capacity replacement and projects that use fly ash to extract alumina to produce refined aluminum, no additional capacity projects will be approved. Strictly control new coke capacity. Wuhai City, Ordos City, and Alxa League will replace capacity on the basis of not breaking the existing capacity (including projects that have started construction before the end of 2020). 

Implement the green electricity price policy. Starting from January 1, 2021, the preferential electricity prices for high-energy-consuming industries in West Inner Mongolia will be cancelled, and policy-based cross-subsidies will be imposed on self-provided power plants. Power trading plans will be improved and trading modes will be adjusted.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Data: SHFE, DCE market movement (Sep 29)
43 mins ago
Data: SHFE, DCE market movement (Sep 29)
Read More
Data: SHFE, DCE market movement (Sep 29)
Data: SHFE, DCE market movement (Sep 29)
The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 29 Sep , 2026
43 mins ago
Indonesia Tightens Mining Rules, Prioritizes Local Contractors Over Affiliates
1 hour ago
Indonesia Tightens Mining Rules, Prioritizes Local Contractors Over Affiliates
Read More
Indonesia Tightens Mining Rules, Prioritizes Local Contractors Over Affiliates
Indonesia Tightens Mining Rules, Prioritizes Local Contractors Over Affiliates
[SMM Aluminum Express News] Indonesia tightens rules on affiliated mining contractors, prioritising local service providers. Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has issued Kepmen ESDM No. 365.K/MB.01/MEM.B/2026, effective September 18, requiring IUP and IUPK holders to prioritise licensed mining-service companies located in the regency or city surrounding their mining areas. Mining companies are also prohibited from directly appointing subsidiaries or affiliated mining-service companies without approval from the Minister of ESDM, including where the companies share the same ultimate beneficial owner. Subsidiaries and affiliates can still be used with government approval under certain circumstances, including National Strategic Projects, construction of mineral processing or refining facilities, and fulfilment of domestic mineral requirements. ESDM Director General of Minerals and Coal Tri Winarno clarified on September 29 that the regulation does not completely prohibit the use of affiliated contractors, but introduces an approval mechanism while increasing opportunities for local mining-service companies.
1 hour ago
Nanchang Aluminum Billet Processing Fees Unchanged on September 29
2 hours ago
Nanchang Aluminum Billet Processing Fees Unchanged on September 29
Read More
Nanchang Aluminum Billet Processing Fees Unchanged on September 29
Nanchang Aluminum Billet Processing Fees Unchanged on September 29
On September 29, Nanchang aluminum billet Φ90 was quoted at RMB 24,340/t, with processing fee at RMB 230/t (flat from the previous trading day); Φ120 at RMB 24,260/t, with processing fee at RMB 150/t (flat); Φ178 at RMB 24,260/t, with processing fee at RMB 150/t (flat). SMM A00 aluminum spot stood at RMB 24,110/t.
2 hours ago