Sichuan And Chongqing Power Restriction Measures Have Increased. Some Enterprises Have Been Shut Down For 11 Consecutive Days
Recently, some provinces and cities to implement different degrees of power restrictions, and local sanitary ware enterprises production and operation were affected. Sichuan issued an emergency notice on August 14, requiring the implementation of August 15 to 20 production shutdown (except security load). In August 21, Sichuan launched an emergency response to the emergency energy supply security level, the power restriction measures to increase. In addition to Sichuan, Chongqing also issued a high temperature holiday notice to some industrial enterprises. They require designated regional industrial enterprises from August 15 to 24 to take “high temperature leave” to share electricity to the people.
Sichuan power restriction measures to increase the limit
Local ceramic sanitary ware enterprises to stop kilns and production
In August 14, the Sichuan Provincial Department of Economics and Information Technology, State Grid Sichuan Electric Power Company jointly issued an “emergency notice on expanding the scope of industrial enterprises to share electricity to the people,” requiring the province (in addition to Panzhihua, Liangshan) of the 19 cities (states) to expand the scope of industrial enterprises to share electricity to the people, and the Sichuan power grid orderly electricity program in all industrial power users (including white list key protection enterprises) to implement production Full stop (except security load). Time from 0:00 to 24:00 on August 15, 2022.
And when entering August 21, Sichuan Province, the Office of the Leading Group of Energy Supply Security Emergency Command issued a notice, in accordance with the “Sichuan Province emergency energy supply security emergency plan (for trial implementation)” provisions, at 0:00 on August 21, 2022 to start the Sichuan Province emergency energy supply security level one emergency response.
The power restriction measures have had an impact on the local bathroom enterprises. According to Diou Home’s “Announcement on the company’s impact by the power restriction policy” released on August 23. The company’s production base located in the Jiajia Street Industrial Development Zone in Chengdu East New District, Sichuan Province, as well as the production lines of the company’s wholly-owned subsidiary Chongqing Monarch Sanitary Ware Co., Ltd. and Chengdu Acrylic Panel Co., Ltd. have been affected by the tight power supply, and the relevant production lines have been operating at reduced loads as required.
Diou home production lines affected by power restrictions mainly produce sanitary products, acrylic panels, the overall output value accounted for a small proportion of the company’s total output value. Diou home said that, as of the date of disclosure of the announcement, affected by the power restriction policy, the relevant production bases and subsidiaries to resume full production run time is uncertain.
It is understood that the Sichuan power restrictions also affected a number of pottery enterprises in the Sichuan jurisdiction, clip river, Danling, Weiyuan and other major ceramic production areas of the pottery enterprises to stop production.
Chongqing asked many district enterprises “high temperature leave”
Monarch sanitary ware and Duravit where the production area is affected
In addition to Sichuan, Chongqing recently also put forward to some industrial enterprises “share electricity in the people” requirements. On August 16, Chongqing Municipal Economic and Information Technology Commission and State Grid Chongqing Electric Power Company jointly issued an “urgent notice on expanding the scope of implementation of industrial enterprises to share electricity with the people”. They asked industrial enterprises in the area to take high temperature leave from August 15 to August 24 to share electricity with the people. The Chongqing electricity restriction area involves the Liangjiang New Area, Yubei District, Beibei District, Bishan District, Banan District, High-tech Zone, Jiangjin District and so on.
Because of the regional advantages, Chongqing has attracted a number of large bathroom enterprises to invest in setting up factories. For example, Diou Home has set up Monarch Sanitary Ware intelligent production base in Yongchuan National High-tech Zone. Duravit’s largest overseas factory is also located in Chongqing Jiangjin District. The factory can produce 1.5 million pieces of sanitary products per year. It is expected that the power restriction will have some impact on these companies.
In fact, before the implementation of the “high temperature holiday”, Chongqing has been part of the region to start the power restrictions. Beibei District, for example, had issued a notice on August 12, requiring enterprises within the jurisdiction of August 14 to 22 restricted electricity. This means that the power restriction time for industrial enterprises in some areas of Chongqing is August 14 to 24, up to 11 days. And in addition to Sichuan, Chongqing, according to market feedback, Zhejiang, Suzhou and other places also have some industrial enterprises that are required to limit electricity and production, but does not involve the ceramic bathroom industry.
Electricity supply continues to be tight
Part of the bathroom raw material prices shouted up
The impact of this Sichuan and Chongqing power restrictions have gone beyond the scope of business production, and thus the entire industry chain. There are raw material production enterprises that have started price increase measures to respond.
The most obvious is the price of titanium dioxide, one of the important raw materials for ceramics. Since this year, the price of titanium dioxide is stable, the trend is not obvious. But since August there have been several rounds of upward adjustments. In August 16, located in Panzhihua City, Sichuan Province, Panzhihua Titanium Sea Technology Co., Ltd. issued a letter to increase prices, including rutile / anatase titanium dioxide for domestic customers by 500 yuan / ton, for international customers by $ 80/ton. Titanium Sea Technology, also located in Panzhihua City, Sichuan Province, also increased the prices of some products. And they raised RMB 500/ton for domestic customers and USD 80/ton for international customers.
Other non-ceramic uses of raw materials have also increased prices. According to the Observer, power restrictions in Sichuan led to production disruptions at the local plants of Tongwei Group and GCL-Poly, the world’s leading polysilicon producer of key raw materials for solar energy. This has pushed up the already tight supply and soaring prices of polysilicon to intensify. There have been a number of solar energy supply companies to raise product prices.
It is understood that the Sichuan and Chongqing power restrictions and high temperature weather continued. As of August 24, the Central Weather Station has issued a high temperature warning for 35 consecutive days. It is expected that many provinces and cities on the 24th 35 to 39 ℃ high temperature weather, including eastern Sichuan, Chongqing, eastern Jiangxi, western Fujian and other parts of the highest temperature up to 40 ℃ or more. It is not difficult to predict that, as the high temperature weather continues, in order to protect people’s livelihood, the local will still take a number of power restriction measures. There is still uncertainty about the time for local sanitary ware companies to resume full production runs.