China’s energy congestion is expanding, closing factories and weakening growth prospects

BEIJING, Sept. 27 (Reuters) – Power shortages in China have halted production at several factories, including Apple and Tesla, and some shops in the northeast have been closed due to growing economic pressures.

In many parts of northeastern China, it has taken place at high speeds in many hours, and city dwellers, including Changchu, are experiencing rapid and long-term reductions, state media reported.

On Monday, the State Grid Corporation pledged to ensure basic power supply and avoid power outages. Read more

Analysts say China’s power shortages have hurt industrial production in many regions and are dragging on the country’s economic growth due to strong coal supplies and atmospheric emissions.

Impact on residential and non-industrial users The night temperatures in northern China’s cities are getting colder. The National Energy Administration has told coal and natural gas companies to ensure adequate energy supplies to heat homes during the winter. Read more

Power production in Lyon County has been declining sharply since July, and supply gaps have escalated to “severe levels” last week. Last week, power outages spread from industrial enterprises to residential areas.

Residents of Huludao have been told not to use high-energy electronic appliances such as water heaters and microwave ovens during peak seasons, and a resident of Harbin City in Heilongjiang province told Reuters that several malls were closed at 4pm (0800 GMT).

At a time when the world’s largest economy is showing signs of slowing down, China’s stock market is weakening. Read more

China’s economy is battling the future of China’s overcrowded (3333.HK) overcrowded real estate and technology sectors. Read more

Product failure

Strong coal supplies and emissions have led to power shortages in China.

China has pledged to reduce its energy consumption by about 3% by 2021 to meet its climate goals. In the first half of the year, only 10 out of 30 states achieved their energy goals and intensified emissions restrictions in recent months. Read more

The power outage has been affecting producers in key industrial centers along the east and south coasts for weeks. Many suppliers of Apple (AAPL.O) and Tesla (TSLA.O) have stopped production on some plants. Read more

At least 15 Chinese companies have said their products have been disrupted by power outages, and more than 30 companies in Taiwan have stopped working to comply with power restrictions.

The steel, aluminum and cement industries were also hit hard by the ban, with almost 7% of aluminum production being suspended and 29% of the national cement production affected, analysts Morgan Stanley wrote in a note on Monday. He said the next industry to face supply disruptions could be paper and glass.

Manufacturers of chemicals, paints, furniture, and soybeans were also affected.

Key Industrial Products China Current Production

Domestic tax cutters

Power shortages have led some analysts to lower their 2021 growth outlook.

Numera reduced its GDP for the third and fourth quarters to 4.7% and 3.0%, respectively, from 5.1% and 4.4%, respectively, and the full-year forecast from 8.2% to 7.7%, respectively. Read more

“Global supply of textiles, toys and machine parts could be affected,” Nomura analysts said in a September 24 note. .

Morgan Stanley analysts say a slowdown, if extended, could hit 1 percent of GDP growth in the fourth quarter.

Chinese Heat Coal Prices

Last week, major coal producers in China met to address shortages and curb inflation. Read more

China, the world’s largest energy consumer and global greenhouse gas producer, aims to increase carbon emissions by 2030 and bring its net worth to zero by 2060.

By Shivani Singh, Min Zhang in Beijing; Edited by Anna Nicolaci da Costa and Tony Munro

Our Standards – Thomson Reuters Principles.

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