An increasing number of factories - especially those in energy intensive industries - have suffered from curbs to their power usage, which were then exacerbated by supply chain disruption across a wide range of metal and ferro-alloy products, with price rallies were extended from the second quarter.
Growing power crunch
Since late August, as many as 20 provinces in China have been experiencing power cuts to some degree, according to estimates from local digital media outlet Jiemian.
Coal shortages arising from China’s tightened coal mining restrictions and reduced Australian coal imports have been blamed for falling supplies of thermal power, which accounted for 71.2% of China’s total power in 2020, according to the country's National Bureau of Statistics.
The soaring coal prices led to a reduction in power generation because the energy companies were unable to pass on such high costs to consumers because power rates in China...