Yorkn USA
Yorkn Canada

Free worldwide shipping on all orders over $100.00

Office Hours: 9:00AM - 19:00PM EST

How China power shortages affect our lead time?

China’s Zhejiang, Hunan and Jiangxi provinces, along with the autonomous region of Inner Mongolia, had restricted the electricity usage of industry and government agencies to combat the shortages of electricity and coal, effective since Dec. 14, several local industries said Dec. 17.

Several local industries and government organizations in Zhejiang province in eastern China received an urgent notice to stop production and prohibit the use of heaters above 3 degree Celsius, a source close to the matter said.

The move was part of Chinese efforts to cool down thermal coal prices as the availabilities of seaborne and domestic coal shrank further in preparation for harsher winter weather, sources said.

Electricity usage in China during winter this year is expected to be up about 9% on the year due to colder temperatures, a trader said.

The move follows China’s Dec. 12 easing of the entry of imported coal to bring down domestic coal prices, sources said.

A national library, Yiwu Library in Zhejiang, shortened its operating hours, switched off heaters and reduced the use of lights, effective Dec. 16, the library said on its official social media platform Dec. 16.

Zhejiang province, on China’s east coast, is close to port destinations for seaborne and domestic materials, so the introduction of restrictions to power usage came as a surprise to the market, sources said.

“It was not a regular practice until this year,” a China-based trader added.

Market sentiment and coal usage in Zhejiang inching lower on the restrictions could suppress seaborne and domestic coal prices, a local utility source said.

However, Chinese domestic coal offers for 5,500 kcal/kg NAR grade were heard at Yuan 800/mt FOB ($122.45/mt) Dec. 17, up Yuan 20-40/mt on market price indications heard Dec. 16.

Indonesian and Russian coal prices continued to increase on a flurry of trades into China as well, sources said.

“The direction of Chinese coal prices depends on the nationwide stocking activities ahead of the Lunar New Year,” a trader said.

Landlocked regions

Landlocked regions in China’s Hunan, Jiangxi and Inner Mongolia had also implemented several measures to control the use of electricity during winter, sources said.

Hunan and Jiangxi in southern China were discouraging the public from excessive power use during peak periods in the morning and late afternoon, according to sources.

A similar practice was implemented in Hunan last year due to its limited access to energy sources, a trader said.

Inner Mongolia was expected to be short by 30 million kW during winter this year, and had started managing electricity shortages since the start of the fourth quarter this year, sources said.

Other coastal provinces including Fujian in southern China may restrict electricity usage as well, several traders said.

“Some of the power plants will stop running soon due to the shortages of coal,” a trader said.

Will This Affect Yorkn Orders’ Lead Time

Yes, and no. The shortage ends until Dec 31, 2020. This will add additional week production to our concurrent orders that are produced in Zhejiang, Hunan and Jiangxi provinces. It will be back to normal after Jan 1, 2015. 

Chinese New Year Shutdown

Most factories will shutdown 2 weeks before Chinese New Year (Feb 12, 2021), and reopen around Feb 28, 2021. Some factories may take couple of more weeks to go back to normal due to shortage of workers and COVID19.

Source: https://www.spglobal.com/

Share:

Facebook
Twitter
Pinterest
LinkedIn
Leave a Reply

Your email address will not be published. Required fields are marked *

3 + 3 =

On Key

Related Posts

Promotional Product Trends to Watch Out For In 2023

As the world emerges from the pandemic, businesses are looking for new ways to connect with their customers. Promotional products offer an effective and affordable way to reach a wide audience, and they can be customized to fit any brand identity. While traditional items like pens and t-shirts will always be popular, there are a few emerging trends that businesses should be aware of. The world of promotional products is constantly evolving, and that means marketers need to be on the lookout for new trends that could help their brand stand out. By keeping an eye on these trends, businesses can ensure that their promotional campaigns are ahead of the curve this 2023 and the coming years.

Everything You Need to Know About Black Friday 2022

As the holidays approach, many retailers begin to prepare for one of the busiest shopping days of the year: Black Friday. On this day, stores offer deep discounts on a wide range of items, from electronics to clothing. In recent years, Black Friday has also become a major day for online shopping, with many retailers offering free shipping and delivery deals. As a result, it’s important to be aware of all the details surrounding Black Friday in order to take advantage of the best deals. Here’s everything you need to know about Black Friday this 2022.

2022 Best Corporate Gifts for Employees and Clients

The holiday season is quickly approaching, and that means it’s time to start thinking about corporate gifts. When it comes to finding the right gifts for employees and clients, it’s important to choose items that are both practical and stylish. This year, we’ve put together a list of some of the best corporate gifts for employees and clients that helps in the delivery of a great work environment. From tech accessories to home office essentials, these gifts are sure to be appreciated by everyone on your list. And with a range of prices to choose from, you’re sure to find something within your budget. So start your holiday shopping early this year, and give the people on your list something they’ll actually use and enjoy.

So You Want a Tattoo? Here’s What You Need to Know

If you’re considering getting a tattoo, there are a few things you need to know first. Tattoos are a permanent investment, so it’s important to choose a style and design that you’re sure you’ll love for years to come. You should also research the different types of inks that are available and decide what will work best for your skin. Once you’ve done your research, it’s time to find a reputable artist who can bring your vision to life. With a little planning and preparation, you can get a tattoo that you’ll be proud to show off for the rest of your life. in this blog post, we’ll discuss more tattoos and how you can start getting inked.

Christmas Promotional Products That Will Boost Your Brand

As the holiday season approaches, so does the opportunity to boost your brand with some festive promotional items. Christmas is a time when people are thinking about giving Christmas gifts, so why not give them a gift that promotes your brand? Some great ideas for Christmas promotional products include branded holiday gift cards, calendars, and coffee mugs. Or, for a more unique approach, you could try giving away branded holiday ornament ornaments. With so many options to choose from, there are sure to be holiday promotional items that are perfect for your business. So get creative and make the most of the holiday season with some brand-boosting Christmas promotional items.

Custom Promotional Products

Fast Turnaround

Free Worldwide shipping

On all orders above $100

Easy 30 Days Returns

If anything goes wrong

International Warranty

Offered in the country of usage