SunSirs: Energy, Review of Domestic Coke Market Policies in 2019

1. From January 1, 2020, the tentative tariff for coke and semi coke is 0%

In order to optimize the trade structure and promote the high-quality development of the economy, according to the relevant provisions of the regulations of the people's Republic of China on import and export tariff, the provisional import tariff rate will be applied to 859 goods (excluding the goods with tariff quota) from January 1, 2020, and the provisional import tariff rate of 7 information technology products will be cancelled from July 1, 2020. For coke and semi coke from January 1, 2020, the provisional tariff is 0%.

2. Taiyuan blue sky Defense War: 3.1 million tons of coking capacity eliminated in the whole city

On September 18, it was learned from Taiyuan Municipal Bureau of ecological environment that according to the newly released action plan of ‘Taiyuan city to win the blue sky defense war’, Taiyuan city will complete the environmental air quality improvement target and the total emission control index of sulfur dioxide and nitrogen oxides issued by the province by the end of the year.

3. Announcement of Ministry of industry and information technology on dynamic adjustment of coking access Enterprises

According to the access conditions for coking industry (2014 Revision) and the management measures for announcement of coking production enterprises, the Ministry of industry and information technology carried out the dynamic adjustment of coking access enterprises.

4. Shandong province reduces coking capacity by 10.31 million tons in 2019

On July 2, the general office of the people's Government of Shandong Province issued the guidance on strictly controlling the total coal consumption and promoting clean and efficient utilization. In 2019, the coking capacity will be reduced by 10.31 million tons, in 2020 by 6.55 million tons and in two years by 16.86 million tons.

5. Hebei: all coke ovens with a height of 4.3m in carbonization chamber will be shut down before the end of 2020

The leading group of coking industry structure adjustment of Hebei Province issued several policy measures on promoting the high-quality development of coking industry structure adjustment, which proposed that the coke oven with a height of 4.3m (industrial policy restriction type) in Hebei coking room must be upgraded or reduced before the end of 2019, and must be completely shut down by the end of 2020. At the same time, it is strictly prohibited to increase coke production capacity.

6. Shanxi continues to halve the transaction fees of coal and coke

In order to reduce the burden on coal and coke production enterprises and users, Shanxi will continue to implement two fees, namely, coal transaction fee and coke spot transaction fee, Shanxi Provincial Development and Reform Commission said.

7. Shandong issued a document asking for the implementation of coking capacity reduction and illegal project suspension

Shandong Province recently issued the notice on the implementation of coking capacity reduction and production suspension of illegal projects, which proposed that all cities should implement coking capacity reduction and production suspension of regulated projects in accordance with the time node requirements of the work plan on promoting the transformation and upgrading of coking industry capacity in the whole province to achieve high-quality Development (lzbz (2019) No. 144). Make sure that all the target tasks are completed on time.

8. Notice of Hebei Province on several policies and measures to promote the structural adjustment and high-quality development of coking industry

In order to fully implement the requirements of the work plan for capacity reduction of key industries in Hebei Province (2018-2020) (Ji Chuan [2018] No. 1), promote the structural adjustment and scientific layout of the coking industry, and achieve high-quality development, nine policies and measures are proposed to ensure that all tasks are completed on schedule.

9. Notice on printing and distributing the three-year action plan for high quality and green development of Shanxi Coking Industry

a. General idea: adhere to the eight character policy of "consolidation, enhancement, promotion and unblocking", adhere to the working concept of innovation, safety, environmental protection, energy conservation and green, focus on the transformation and upgrading of the coking industry, and strive to achieve the improvement of the quality of the coking industry in two years.

b. Development goal: to ensure that the coking capacity of the province is only reduced but not increased, and the level of energy conservation and environmental protection of coke oven equipment and industry is significantly improved, to be refined and high-end. In 2019, we will strive to increase the capacity of large-scale coke by 10 million tons, accounting for 40%; in 2020, we will strive to increase the capacity of large-scale coke by 7 million tons, accounting for 50%; in 2021, we will strive to build the capacity of large-scale coke by 60%. Since October 1, 2019, all coking enterprises in the province have reached the standard of environmental protection special emission limit.

c. Key actions: 1. Fully promote the construction of key coking upgrading projects; 2. Plan to promote the development of deep processing of chemical products to the high end; 3. Guide the implementation of coking capacity reduction and replacement policies; 4. Eliminate backward and excess coking capacity in accordance with laws and regulations; 5. Promote standardized management of coking industry; 6. Cooperate with environmental protection departments to complete the transformation of special emission standards; 7. Take multiple measures to deepen exchanges and cooperation.

d. Supporting policies and measures: 1. Technical transformation fund support 2. Increase financial support for high-end chemical production projects 3. Establish key project scheduling mechanism 4. Build diversified project promotion service platform 5. Explore and integrate resources to build coking enterprise credit system.

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