Re: More on the China Power Crunch
in response to
by
posted on
Oct 01, 2021 11:14AM
https://www.reuters.com/world/china/china-energy-crunch-triggers-alarm-pleas-more-coal-2021-09-28/
https://www.cnbc.com/2021/09/30/heres-how-big-a-deal-chinas-power-crunch-is-for-the-economy.html
Fujian Province, home to SuperPhotonics, is not immune from the impact of the "power crunch" as evidenced in the following quote: " In Fujian province, China's key stainless steelmaking hub, some mills have started to suspend production, with national monthly output set to fall by more than half a million tons, according to Mysteel."
"In August, the National Development and Reform Commission, China's economic regulator, criticized nine provinces and regions for their rising power consumption, prompting action that lead to the current power crunch. Guangdong, Guangxi in the south, Jiangsu, Fujian in the east and Qinghai and Ningxia in the west are among the provincial level places that were criticized for excessive use."
"The Chinese province of Fujian, a major stainless steel and ceramics-making hub with an economy bigger than Malaysia and Singapore combined, is the latest region to face electricity cuts, bringing the total number of areas affected to at least 20. Fujian will ration power from September 28 to 30, and again from October 4 to 16, according to people familiar with the matter."
https://www.bloombergquint.com/china/china-media-say-steps-being-taken-to-cool-prices-energy-update
Although not specific to Fujian Province the following quote does indicate that Technology manufacturing in China is not exempt from the repercussions of the power crunch:
"An internal document from a large technology components maker in China reviewed by Reuters said more than half its daily production in Kunshan, in the eastern industrial province of Jiangsu, had been suspended since earlier this week.
Meanwhile in Foshan, in southern China’s bustling province of Guangdong, the company was only allowed to produce late at night and in the early morning from mid to late-September, according to the document, which said manufacturers were “ambushed” with the new restrictions"
To add complications to the equation in Xiamen, Fujian Province ( where SuperPhotonics is located) the Delta Variant of SARS-CoV-2 has poked up its ugly head in Xiamen, even though the reported number of cases is quite small ( assuming you can have confidence in the accuracy of the number of reported cases by Chinese officials ):
https://www.aljazeera.com/news/2021/9/14/china-covid-outbreak-grows
"The outbreak has spread south to Xiamen, which reported 32 new cases of community transmission for September 13 compared with just one case a day earlier. The first patient was a close contact of someone diagnosed with COVID-19 in Putian, health authorities said.
Xiamen has also locked down some areas of higher virus risk, and told schools to move learning online. Public venues such as cinemas, gyms and bars have been closed and residents told not to leave the city as authorities began testing for the coronavirus."