In the context of overcapacity in various industries, the coke industry has become a leader in capacity reduction.

The reporter learned at the China Coking Industry Association Information Conference held on August 16 that the elimination of backward production capacity is becoming the conscious action of coke production enterprises and the normal measures for structural adjustment of the entire industry.

Huang Jinqian, president of the China Coking Industry Association, said that since this year, a group of coke production enterprises with certain resources, technologies, or market advantages have actively eliminated coke ovens with a height of 4.3 meters or more, and the scale standards of these coke ovens have exceeded The maximum phase-out criteria specified in the "Entry Conditions for Coking Industry". At the same time, a total of 19 tamping coke ovens with a height of 5.5 meters and top-mounted coke ovens with a diameter of more than 7 meters were put into production, with an additional annual production capacity of 11.85 million tons.

Although the coke ovens that are put into operation are large and the environmental protection standards are met, “With the gradual tightening of the coke market and the increasingly stringent environmental protection requirements, new production capacity is expected to decline in the second half of the year”. Huang Jingan said that the enthusiasm of coke production enterprises to apply for approval in accordance with the “Entry Conditions of the Coking Industry” has been greatly increased. "A lot of companies are increasing their investment in environmental protection, and some have found out how the association can inquire about self-improvement."

In addition, the coking industry can be said to be effective in extending the industrial chain and upgrading technology. According to statistics from the China Coking Industry Association, in the first half of this year, four sets of methanol plants for coke oven gas were newly built and reconstructed or expanded, with an annual production capacity of 900,000 tons. Key statistics of coke production enterprises increased by 19.4% year-on-year in production of methanol, and 5 sets of CDQ units were put into production or trial production with an annual production capacity of approximately 17 million tons. The key statistics of coke production enterprises in coking processes have reduced the energy consumption per ton of coke by 0.15 kg of standard coal.

Huang Jingan believes that it is the severe situation of large-scale losses and meager profits, so that coke production enterprises have a sense of urgency and improvement mentality. "The company has improved the standards of coke ovens and extended its industrial chain, not only making it more environmentally friendly, reducing energy consumption, but also increasing its efficiency."

The average energy consumption per ton of coke produced by the China Coking Industry Association is 124.5 kg of standard coal, but the average energy consumption per ton of coke between coke-coking companies and independent coking companies is about 40 kg, and the gap between the maximum and minimum enterprises' ton coke energy consumption is as high as 90 kg. Moreover, the difference between the highest tonnage coke production cost and the lowest manufacturing cost is 600 yuan, and the average unit cost difference between coke oven gas to methanol is 600 to 1,000 yuan.

The enormous economic potential brought about by the elaborate production process and technology has promoted the coke production enterprises to tap potential and increase efficiency. However, according to Jin Qiang, some local governments still have enough momentum to pursue GDP, and even force the company to risk Venture investment. “Not long ago, we learned that a coking enterprise in Anhui had just started production of two 5.5-meter coke ovens and the process was not straightened out before it was forced by the government to start the second-phase project.”

In the case of a coke market surplus, the blind project will not only have market risks but will also encounter policy risks.

Xin Renzhou, deputy director of the Department of Industrial Policy of the Ministry of Industry and Information Technology, stated that the problem of local government pursuing political achievements and forcing enterprises to implement projects requires the country to implement policy guidance. Recently, the Ministry of Industry and Information Technology has announced the list of companies that have eliminated the backward production capacity in the first batch of industries this year, covering 19 industries such as steel and coke, and strive to eliminate the backward production capacity of enterprises on the list before the end of September. In addition, the Ministry of Industry and Information Technology is working with the National Development and Reform Commission to formulate a policy plan to eliminate overcapacity in various industries, including the coke industry, and plans to increase access barriers in environmental protection, energy conservation, and technology. It is expected that the plan will soon be introduced.

Finally, Jin Gan said that the "Coke Industry Admission Standard" revised in four years will be revised this year. Unlike the previous edition, the upcoming version will, in addition to continuing requests for scale, also impose higher requirements on environmental protection and extend the industrial chain as a new entry condition.