China's Datang shuts PP plant on coal consumption control

It is reported that Datang Duolun Coal Chemical Corporation has shut its coal-based PP plant in Inner Mongolia starting 6 September 2021 following an order from the regional government as part of the “Dual Control” of energy consumption and energy intensity. 

The 460,000 tons/year PP unit is expected to remain offline until 30 September 2021. 

In a statement on its official gazette, the Inner Mongolia regional government said that for the first seven months of 2021, the region’s coal consumption hit 6.7 million tons, representing a 2% growth rate year-on-year, which exceeded the target of 1.5% growth rate. High energy consumption companies within the region are ordered to temporarily shut down as not to affect the year-end target.

Coal supply in local China has been persistently tight over the past months due to high demand and transportation bottlenecks. The central government has been rallied top miners to ramp up supplies. According to a report from Reuters citing local media, in August 2021, coal inventories held by miners fell 26% year-on-year to historic lows.