Supply of thermal power, the major method of power generation in the country, has been affected after coal prices spiked. Additionally, hydropower supply has been curtailed by a reduction in rainfall in southwestern regions. Insufficient power supply has come at a time of strong demand amid growing economic activity.
Additionally, a few regions have rationed usage for high energy-consumption companies to ensure dual control of the total amount and intensity of energy consumption in accordance with the country’s 14th Five-Year Plan.
Fastmarkets has collated a list of the key provinces and regions facing power cuts, and the main affected ferro-alloy and base metal products in each area, as of Tuesday June 8.
Energy controls in Ningxia could affect an estimated 30,000-40,000 tonnes per month of silico-manganese output, accounting for around 13% of 270,000 tonnes the province produced in May, according to market participants. This, together with power cuts...