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Shutdown and production cut caused by the dual controls may send shockwaves through markets

China will firmly control energy-hungry and high-emission projects to improve the country's "dual control system" on energy consumption and energy intensity, the National Development and Reform Commission(NDRC) said in a recently issued plan released on Thursday.

 

Recently, several southern China provinces including Guangdong, Guangxi and Guizhou have adjusted up electricity prices during the peak consumption hours, in response to operating pressure of coal-fired power plants, some of which are on the verge of bankruptcy.


It is reported that the operation environment of national textile and printing and dyeing mills is unimaginable, and the situation is quite severe! Several printing and dyeing industry clusters are facing strict policy control, and power rationing and shutdown measures have been issued in Jiangsu, Zhejiang, Guangdong and other regions. Under the background of the continuous price rise of the three traditional energy sources "water, electricity and gas", dyes, additives and large chemicals have also risen. In addition to dispersing reactive sulfide dyes, large chemicals such as liquid alkali, flake alkali, sodium sulphate and glacial acetic acid also rose sharply. And the phenomenon of out of stock and supply has occurred, which makes the printing and dyeing mills face great operating pressure. 

 

It is reported that affected by the "dual controls" of energy consumption, Shaoxing Keqiao issued a notice yesterday to impose power cuts on high-energy-consuming enterprises, involving 161 enterprises, including thermal power plants, printing and dyeing mills and polyester factories.

 

It is understood that as a major printing and dyeing town in China, printing and dyeing mills in Keqiao Binhai began to stop last night, and all stopped this morning, which is expected to last until the end of Sep. Fabric orders have informed customers about late delivery. Dyeing mills in Shaoxing Binhai, and Jiangsu Changshu and Nantong have all stopped output. Operating rate of dyeing mills in Wujiang declines to 50%, and those in Changxing still stop production but plan to partially resume output tonight. Dyeing mills in in Haining see partial production cut and the operating rate is about 50%. It is estimated that the operating rate of printing and dyeing mills in Jiangsu and Zhejiang reaches 23%.

 

Polyester factories, including Tiansheng, Hengming, Jinxin and Juxing, with a total production capacity of 2.5 million tons. A production reduction plan is being discussed and is expected to be implemented after it is confirmed today, but some have already cut production moderately in the early stage.

 

In addition, some large and medium-sized texturing enterprises and chip spinning enterprises are also involved in production restrictions.

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