SHANGHAI, Oct 9 (SMM) - According to SMM, abount 25% of the montly output in Jiangsu Province (17.5% of domestic total output) will be affected by electricity shortage and energy consumption control, and the proportion stood at 10 - 15% in Zhejiang (13%), Guangdong (12.8%), and Anhui (10.2%).
Jiangsu: Copper rods comapnies have suspended production for 3-8 days due to power rationing; cable and enamelled wire companies suspended production for 5 days by the end of September. Some copper processing enterprises in Suzhou are restricted to 70% of last month's electricity consumption, and the high power-consuming machines in copper rod factories have been shut down. The main chemical products companies in Taizhou suspended production from 9.16 to 10.7, resulting in a big rise in insulation materials and a shortage of products. The output of copper in Jiangsu accounted for 17.5% of the national production, and about 25% of the total production of copper rod produced from copper cathode in Jiangsu will be affected in September, greatly impacting the demand for copper cathode. At the same time, as the leading supplying province of insulation materials for the cable industry, the continued shortage of insulation materials will affect the production of cable companies in other provinces as well.
Zhejiang: Some cable and enamelled wire companies have received notices of power rationing in October, and are expected to shut down for a total of one week in September and October, affecting the production for about 4 days in September. A large copper tube factory will also stop production during the National Day holiday in response to the government's energy consumption control policy. Most of the copper sheet/plate and strip enterprises will close for 3 days in a week, and the production were suspended for 5-6 days during the National Day holiday. Zhejiang's power rationing policy came a little later than other provinces, but the intensity has been great. Zhejiang's copper output accounts for 13% of the country's total output, becoming the second most influenced province in terms of copper cathode demand. About 15% of the overall monthly output in Zhejiang will be affected in September-October.
Guangdong: The Pearl River Delta, Shantou, Jieyang and other areas were affected by the power rationing, covering 90% of copper processing enterprises and their downstream companies in Guangdong. From September 16, most copper enterprises in these areas were required to close for 3 days in a week or even 6 days in some areas, mostly for cable and enamelled wire enterprises. The output of copper in Guangdong accounts for 12.8% of the national production, and around 15% of the monthly production in Guangdong will be affected by power rationing.
Anhui: Some copper downstream processing enterprises were asked to reduce their electricity consumption by 20% since September 26, and the impact on production has been limited with a small decline in output. Since the restriction has been imposed on the aggregate production, a group company shut down most of the production lines of copper sheet/plate and strip, and about 60% of the production has been affected due to intensifying power rationing. The output of copper in Anhui accounts for 10.2% of the country’s total production, and the subsequent impact of power rationing on the local cable, sheet and strip, copper rod and other enterprises will expand, which is expected to affect 10% of local production.
Guangxi: The copper tube, wire and cable processing enterprises in Guilin, Baise, Liuzhou and other areas received notice on September 26 to suspend production until the end of the month. The output of copper in Guangxi accounts for about 1% of the domestic total output, thus the overall impact to copper cathode demand has been insignificant.
Hunan: The off-peak production scheme has been implemented since September 25, affecting 7 - 12 days of production among local copper rod as well as wire and cable enterprises. The power rationing continues during the National Day. The output of copper in Hunan is less than 1% of the domestic total output, thus the overall impact is insignificant.
Shandong: Most copper processing and downstream companies have been shut down for 3 days in September, affecting 10% of the total production. Copper output in Shandong accounts for 3.8% of national production, and the impact has been insignificant amid modest power rationing.
Heilongjiang, Jilin and Liaoning: The sheet/plate and strip enterprises in Liaoning, cable and wire and copper foil enterprises in Jilin and Heilongjiang were subject to off-peak production scheme, and the production suspended in September 25 – 30, leading to sluggish restocking demand ahead of the National Day holiday. The copper output in these three provinces accounts for less than 1% of the national production, thus the impact was limited.
Hebei: About 10% of the production of copper rod enterprises that use copper cathode or copper scrap has been affected by power rationing, and the impact on downstream enterprises has been insignificant. The output of copper in Hebei accounts for less than 1% of the national copper production, thus the impact was limited.