China is in the grip of a severe shortage of both coal and electricity as the economy has resumed strong growth after the corona virus recession but coal mine output has failed to keep up, leaving generators short of fuel.
Reflecting a booming economy, China’s electricity generation increased by 13% in the first eight months of 2021 compared with the same period last year.
But coal mine production has climbed by just 6% compared with 2020, according to monthly reports from the NBS. The result has been a severe depletion of coal inventories which has contributed to low stocks at many power plants and upward pressure on coal prices. This has not increased electricity prices, which are regulated, but has led to surging coal prices and forced many power plants to cut back on purchasing coal to avoid running a loss.
Meanwhile, Chinese government efforts to curb energy consumption and its emissions are also playing a role.
The energy shortage affected brass valve manufacturers and factories in supply chain across the country, many of whom have had to curb or stop production in recent months. Some areas supply 5 days and stop 2 days in a week. some supply 3 and stop 4 days, some even just supply 2 days but stop 5 days. Brass valve factories China have to pay extra salary to their workers, which will lead brass valve costs and prices increase.
The power shortages will inevitably impact both heavy industries such as aluminum and steel right through to downstream sectors.
As a result, production time of brass valves in China takes longer, the buyers abroad need to confirm stock demands and predict enough time when ordering brass valves.
