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Aluminum is affected by the epidemic's power curtailment

Views: 6     Author: Site Editor     Publish Time: 2021-08-12      Origin: Site

Enterprise operating rate affected by heavy rain in Henan

The start-up rate of leading aluminum processing enterprises fell slightly by 0.7 % this week compared with last week, mainly due to COVID-19 and control of the electricity consumption. Relatively speaking, the impact of the traditional off-season on leading enterprises is relatively limited, which is more reflected in the decline in orders of small and medium-sized processing enterprises.

At present, the new electricity consumption limit in Henan has a obvious impact on local plate and foil enterprises, the impact time is unknown, and it is expected to lasts two weeks. The impact of the COVID-19 is mainly reflected in transportation. Vehicle access in medium- and high-risk areas, especially across provinces, will be more restricted. Short-distance transportation can still be maintained under the condition of increasing freight rates.aluminum car body fabrication for sale-YuanfarAluminum

The average daily operation capacity of aluminum plate and foil in Henan Province is about 12100 tons, and the average daily production of aluminum plate and foil in Henan Province has fell about 3600 tons. The daily consumption of electrolytic aluminum in China averages is about 110,000 tons, and the average daily consumption of foil and plates in Henan Aluminum plates, which is the most severely affected by electricity, accounts for 3.3% of total consumption,.

This week, the start-up rate of leading aluminum plate and foil enterprises has dropped to 79%. The impact of the COVID-19 has expanded this week, which has not yet led to the suspension of production for aluminum plate and foil factory.

measures against power curtailment

However, transportation is very difficult due to the COVID-19 in Zhengzhou and other places. At the same time, the willingness of nonlocal vehicles to go to the COVID-19 area is extremely low, and the transportation cost of raw materials has risen. It was reported this week that the shortage of electric coal in Henan has limited the power supply for industrial users. Some local enterprises still produce by using their own power. Some aluminum plate and foil factories have indeed reduced production due to insufficient power supply, and the operating rate generally ranges from 50% to 80%. Although no company has yet feedback that production has been completely shut down due to insufficient power supply, many companies are worried about the possibility of continued power shortage in the later period. It seems that there is a possibility of further expansion of the COVID-19, power restriction and other issues. The overall start-up rate of the aluminum plate and foil industry and the start-up rate of leading enterprises may still decline. Power restrictions will lead to an increase in the production period, shortage of ingot material, and the situation in the seller's market continues.

Our 95% products are from Henan factories . According to the COVID-19, electricity consumption limit, and the big-flood in Henan last month, the start-up rate from factory has indeed decreased, but every month, we export at least 1000 tons aluminum products, including aluminum coils for caps, aluminum coils for building and aluminum coils for packaging, it’s a huge amount, and also we have ample cashflow, so that even if in this difficult situation, our delivery time would not be affected strongly. Factories would give priority to our production. And also we have strong responsibility, even if it’s a small order, like 1 ton, 5 tons, we also focus every step and progress, that to ensure no mistake or delay. 

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XI'AN Yuanfar Aluminum

Our main products: Aluminum coil, aluminum foil, aluminum plate (smooth surface, surface treatment, surface coating), these products are widely used in the following industry, such as packaging, construction, Automotive and so on. The annual export volume of aluminum materials can reach 20000 tons.

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