How TO Do With Chinese Electricity Control Policy?
2021-10-14
In recent days, Chinese products importers are full with news about longer lead time and higher prices, because of Chinese electricity control policy. Formerly, Chinese manufactures can keep production go on possibly 24 hours each day and 30 days each month. However, now, electricity is forced to cut off for over 15 days each month by the policy.
The importers are possibly confused of the reasons. Firstly, under the background of the double carbon policy, Chinese coal production decreased. Last year, China first put forward the concept of "double carbon" goal of carbon neutralization and carbon peak. Energy conservation, emission reduction, reducing energy consumption, and green and low carbon are the national requirements for local governments at all levels, involving local assessment indicators, which has led to the compression of coal output and the decline of market supply.
Secondly, due to the impact of the overseas epidemic, a large number of orders poured into China, resulting in a significant increase in power demand and power consumption. If you want to generate more power, you can only buy a large amount of coal (thermal power is the main force in China), which has led to an increase in the price of coal in the market and increased the power generation cost of power generation enterprises. Moreover, the price of imported coal are also raised up high, because of overseas epidemics. Relevant economic data show that compared with the beginning of the year in September this year, The unit price of coal has nearly doubled. In this case, when the power grid is forced by China not to raise the purchase price, the more power generation enterprises generate, the more profit they lose. Of course, they are unwilling to increase power generation.
Therefore, many Chinese local governments have no other choices, but to control the electricity use of industrial enterprises. Many Chinese products importers are already fed with increasingly higher freight cost, and now they have to face increasing price and longer lead time. How can they do?
As quartz slabs manufacturer, we advise our buyers to have purchase plan ahead, so they can have enough stock materials to sell. What's more, we choose to walk hand in hand with our buyers, trying to sacrifice our own profit and keep similar prices for our buyers. We are convinced that no matter how the situation goes, our mutual trust and efforts will solve all problems.
