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CSG Electricity Shortages to Affect Copper Industry Little
Aug 22,2011 17:19CST
smm insight
Source:SMM
China Southern Power Grid (CSG) reported severe shortfalls in electricity supply, but SMM believes it will have a limited impact on the copper industry.

SHANGHAI, Aug. 22 (SMM) –Due to recent high temperatures and shortages in water and coals, China Southern Power Grid (CSG) reported severe shortfalls in electricity supply, which will likely last through the end of this year. Regard to this issue, SMM believes the electricity shortages from CSG will have a limited impact on the copper industry. 

First, there are fewer copper smelters and copper semis processing companies in the CSG areas including Guangdong, Guangxi, Yunnan, Guizhou and Hainan, accounting for a small proportion in China's total capacities. Based on data, output of refined copper and copper semis in the above mentioned five provinces only accounted for 9% and 13% respectively of China's total output.   

Furthermore, copper smelters and copper semis processing companies are not bearing the brunt of electricity restrictions due to relatively small electricity consumption in copper industry. Based on SMM sources, only some of copper smelters and copper semis processing companies were little affected in the summer peak demand period.
Therefore, SMM believes tightening electricity supply of the CSG will neither exert significant impacts on local copper smelters and copper semis processing companies, nor bring any influence China's whole copper industry.  
 

copper industry;electricity shortages CSG

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