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China Market Insider Unprecedented Crisis in China's Chemical Industry — Power Shortage Leads to Price Explosion
The energy crisis in China has triggered a price explosion for many chemical products. Around a quarter of all chemical companies in the People’s Republic have had to curtail or temporarily halt production since electricity became scarce in September, Chinese media report.
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Beijing/China – “Several chemical companies have announced the suspension or reduction of their production,” PROCESS (China) reports. At least ten listed chemical companies, such as Chenhua, Hongbaoli, West Gate Tianyuna, and Chengxing Group, were among them, stated the report.
China’s central planners had ordered many of the country’s provinces to save electricity after they previously missed their savings targets in light of Chinese President Xi Jinping’s ambitious climate goals. The rise in coal prices worldwide and in China made it unprofitable for energy companies to continue producing electricity at total capacity.
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