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Chinese factories are facing Power Limitation Now!

The strictest "Power Limit" rule is here! All processing factories are discontinued! Start production without authorization and force power off for 20 days! Many factories will have Chinese New Year holidays early!

Lynette.wu@chinashoelink.com

As winter enters earlier this year than in previous years, and due to the reduction of coal burning, the drop in reservoir water levels, the inability of wind power to generate electricity effectively due to freezing, and the reduction of external power, the power supply in many areas are relatively severe. "Power Cuts" and "shift production", the power restriction order struck again.

Many foreign traders said that they have survived the epidemic blockade and the off-season, and they finally have more orders in the second half of the year, but they did not expect the power cut to stop production.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Zhejiang Province: All processing plants will stop production before December 31st. 2020

Recently, many factories in Zhejiang responded and received urgent notices requesting that all processing factories stop production from now until December 31. Government agencies have also received notices that air-conditioning should not be turned on if the temperature is above 3 degrees.

The power curtailment in Zhejiang Province is mainly affected by the advent of industrial power peaks and increased pressure on power supply guarantees.

Foreign companies are still in a state of shutdown due to the COVID-19. A large number of manufacturing orders for Christmas and New Year, which are based on high energy-consuming industries such as chemical fiber, chemical industry, printing and dyeing, and textile, have been transferred to Zhejiang, Guangdong and other places in China.

In November this year, the total export value of Zhejiang Province reached 238.16 billion yuan, a year-on-year increase of 20.8%. Foreign trade is fierce, orders are full, and companies work overtime to produce, but they also put tremendous pressure on Zhejiang's power supply guarantee.

Electricity curtailment in Zhejiang Province is also affected by the severe situation faced by the "dual control" and "coal reduction" work and the requirements for green development.

On December 13, the Yiwu Development and Reform Bureau issued the "Energy Conservation and Use Proposal", advising administrative institutions to turn on or off air conditioners as little as possible. In addition, it also proposed reasonable use of lighting and stopping elevators below the third floor.

On December 17, Yiwu Trade City informed that due to the need for epidemic prevention and control, the venue will be cleared and disinfected after 4:30 in the afternoon, and personnel are forbidden to enter-the "World Supermarket" closed ahead of schedule.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Henan Province: Power shortages, factories stop production

Recently, Henan No. 1 Thermal Power Company issued an emergency letter regarding capital shortage and coal shortage. A document titled "Letter from Henan Nengxin Thermal Power Co., Ltd. on Capital Tightness and Coal Shortage" was circulated in Xuchang City.

 

The letter stated that it is currently making every effort to ensure the heating of Xuchang residents, but the current plant has only more than 10,000 tons of coal. Due to Yongmei’s default event, the company’s financing channels were interrupted and there was a serious shortage of funds. There was no capital to purchase coal. If the funds were not raised in time, the supply of coal would be interrupted and the units would be shut down.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Changsha, Hunan Province: Restrictions on industrial power usage, and enterprises staggered production

Recently, the temperature in Changsha has dropped to the "freezing point" and the electricity load has risen rapidly.

 

According to the official website of the Changsha Municipal Development and Reform Commission, the Hunan Provincial Development and Reform Commission requested that from December 8th, the province initiates power rationing measures. More than 7,000 large industrial and general industrial and commercial enterprises in the city are required to shift peak production, avoid peak power, and limit industrial power consumption such as high energy consumption and high emissions.

 

According to the staff of the Changsha Electric Power Department, the curtailment is related to the sudden drop in temperature and the sudden increase in power consumption. State Grid Hunan Electric Power Company expects that the province's electricity demand will exceed the power supply limit of the Hunan Power Grid this winter and next spring. There will be a gap of 3 to 4 million kilowatts of electricity and a gap of 0.1 to 20 million kilowatt-hours of electricity available per day.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Jiangxi Province: Implement interruptible load in the morning and evening peak period

Affected by the cold wave, the Jiangxi Power Grid coordinated the power load and dispatched power generation and received power to a record high. The Jiangxi Provincial Development and Reform Commission decided that starting from December 15th, interruptible loads will be implemented in the morning and evening peak periods, and orderly power usage will be started.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Chongqing: Coal mines stop production for rectification, increasing power supply shortage

On December 9, Chongqing held a video and telephone conference on work safety and social stability. Next, Chongqing will carry out in-depth investigation and remediation of hidden dangers in the coal mine field, and strictly implement the control measures of shutting down and rectifying mines.

 

As early as four days ago, all coal mines in the city had stopped work and production, and coal mines that were included in the closure and exit were not allowed to go down.

Lynette.wu@chinashoelink.com

Lynette Wu Photography /Quanzhou Xuanfeng Footwear Co.

Production was shut down due to heavy pollution before, and production was shut down due to power shortage recently.

 

If the temperature drops further, the electricity load gap will further expand, and there may be more industrial power outages in more areas that will cause factories to stop production. However, production companies in many places stop production for various reasons, which may reduce the supply of industrial products and chemical raw materials, which in turn will trigger a new round of supply and demand imbalance, leading to a wave of price increases before the holiday.

 

Many small and medium-sized foreign trade factories feel even more troublesome. Production materials and labor costs have risen, the U.S. dollar exchange rate has fallen, container shortages and freight rates have soared, and the impact of power rationing requires off-peak production, and order fulfillment is difficult.