Supply Chains Unclog as Parts of China Lift Curbs on Power Use
Miao Qi
DATE:  Nov 17 2021
/ SOURCE:  Yicai
Supply Chains Unclog as Parts of China Lift Curbs on Power Use Supply Chains Unclog as Parts of China Lift Curbs on Power Use

(Yicai Global) Nov. 17 -- Supply chains have begun to unblock as some areas of China, including southeastern Fujian province and eastern Zhejiang province, scrap restrictions on electricity use as power supplies get back to normal.

Orders are gradually increasing as suppliers can no longer delay deliveries due to power and production restrictions, Li Yanting, deputy general manager at leading sauna maker Xuzhou Healthland Sauna Equipment, told Yicai Global.

Delivery times for raw materials have returned to seven to 12 days from 15 to 20 days, and prices have dropped, according to Xiao Xiao, marketing director at Shanghai Happyfills Crafts and Gifts. The cost of raw materials and shipping has fallen overall, Zhu Xinchun, general manager of Yiwu Hanlin Electronics, told Yicai Global, adding that the clockmaker’s orders have risen slightly from last year.

Fujian and Zhejiang ended power rationing during peak hours on Nov. 1 and Nov. 8, respectively. As of Nov. 6, the situation had almost completely returned to normal in the areas covered by the southern power network, according to State Grid. Only some provinces decided to curb use by high-energy consuming and high-polluting industries at certain times of the day, the utility added.

On Nov. 4, China Southern Power Grid had its first peak-free power consumption since it started ‘orderly power consumption,’ or rationing, on May 10. The amount of coal in the south has increased, while power cuts and limited output have dropped amid a series of recent measures to ensure electricity supply, the firm said. The supply and demand imbalance is easing, it added.

The next step is to guarantee the transport of coal, oil and gas and the transmission of electricity to ensure the smooth operation of the economy and society, the security of energy supply, and a warm winter for the people, Meng Wei, a spokesperson for the National Development and Reform Commission, said yesterday.

Editor: Futura Costaglione

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Keywords:   Electricity Shortage,Electricity Supply,Supply Chain,Coal