Some Copper Processing Enterprises Suspended the Production due to High Temperature and Power Rationing in Chongqing

SHANGHAI, Aug 19 (SMM) - Due to the high temperature in Chongqing, the power supply was tight. Therefore, Chongqing issued the emergency notice on expanding the scope of power rationing to ensure the civilian use. The power rationing will last from August 17 to 24, 2022 (which will be adjusted in time according to temperature changes and supply and demand situation). According to SMM, two copper tube enterprises in Chongqing suspended the production and may last until August 24. However, the losses were limited amid the traditional off-season. In addition, a copper rod enterprise in Chongqing said that its production was relatively normal as the enterprise mainly use natural gas. There is no large-scale refined copper smelter in Sichuan and Chongqing.

On August 14, Sichuan Province also issued a relevant notice to stop all industrial power users (except safe power use) from August 15 to August 20. The power consumption of Yunnan in south-west China was relatively normal. Generally speaking, the power limitation in Sichuan and Chongqing directly affected the copper processing enterprises that mainly consume electricity. According to the traders, the trading volume of refined copper in Sichuan and Chongqing fell recently, and the downstream customers purchased less due to the suspension. Only some copper rod enterprises purchased in the form of long-term orders. In this scenario, the demand for refined copper in Sichuan and Chongqing decreased significantly.