The local government of China's Ningxia province, a major production hub for ferro-alloys and some minor metals in the country, has laid out a plan to reduce energy consumption in the next three years.
The northwestern province aims to reduce energy consumption per gross domestic product (GDP) by 9.6pc, equivalent to 9mn t of standard coal, from 2021-2023. Ningxia's energy consumption per unit of industrial added value is projected to fall by 11.3pc over the same period.
The energy consumption curbs are expected to pressure production of several key ferro-alloys, including ferro-silicon, silico-manganese and calcium-silicon, as well as minor metals such as magnesium and manganese, in Ningxia in the coming years, although it is hard to figure out exactly how much production will be lost, according to market participants.
Production of most of these ferro-alloys and metals is considered energy intensive. Producing one tonne of ferro-silicon typically requires 7,800-8,800kWh of electricity in China, while around 11,000-12,000 kWh/t of power is needed for calcium-silicon. One tonne of manganese flake output consumes around 7,000kWh of electricity.
Ningxia is one of the key production hubs for these commodities in China. It has a silico-manganese capacity of 6.3mn t/yr, accounting for 20pc of the country's total. Its ferro-silicon capacity of 1.8mn-1.9mn t/yr accounts for over 20pc of China's total. Ningxia's calcium-silicon capacity has reached nearly 60,000 t/yr, or around...
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