LONDON, November 22, 2017 /PRNewswire/ —
The winter policy will require capacity cuts in the raw material sector, most notably for producers of carbon anodes and petroleum coke. Which market will be affected more? Will this lead to a raw material shortage?
With winter curtailments upon us, many questions remain regarding the availability of petroleum coke and carbon anodes. Despite the uncertainty, one thing remains obvious; the Chinese government is taking action to clear up one thing, the sky. The winter season in China is a time when pollution becomes a large concern as coal-fired power plants run harder to provide additional power for heating. Add this to the base line pollution from the industrial sector and you have a situation that requires action.
Roughly 2 million tons of primary aluminum capacity will be impacted by the winter cuts, translating to nearly 840,000 tons of production cuts in Q4 2017 and Q1 2018 combined. But the impacts will not end here as the winter policy will also require capacity cuts in the raw material sector, most notably for producers of carbon anodes and petroleum coke. But which market will be affected more? Will this lead to a raw material shortage? This insight focuses on the potential impacts of the winter curtailment policy on the carbon anode and petroleum coke markets in China.
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