Several provinces in China have been hit by power cuts in the past two months due to electricity shortages and energy controls, resulting in reduced production and price fluctuations for metals and ferro-alloys, including aluminum, zinc, silicon metal, ferro-chrome and silico-manganese.
Supply of thermal power, the major method of power generation in the country, has been affected after coal prices spiked. Additionally, hydropower supply has been curtailed by a reduction in rainfall in southwestern regions. Insufficient power supply has come at a time of strong demand amid growing economic activity.Energy controls in Ningxia could affect an estimated 30,000-40,000 tonnes per month of silico-manganese output, accounting for around 13% of 270,000 tonnes the province produced in May, according to market participants. This, together with power cuts...