Power cuts in China spur base metal, ferro-alloy price rises in Q2

Several provinces in China have been hit by power cuts in the past two months due to electricity shortages and energy controls, resulting in reduced production and price fluctuations for metals and ferro-alloys, including aluminum, zinc, silicon metal, ferro-chrome and silico-manganese.

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.

Silico-manganese

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...

Published

Hui Li

Siyi Liu

Yiwen Ju

Jessica Long

June 08, 2021

04:00 GMT

Shanghai