Electricity Will Be Rationed in China, Seafood Price Will Rise After National Day

Electricity will be rationed in China, seafood price will rise after National Day

Power cuts have been issued in a series of areas across the country due to the recent shortage of power supply. So, what are the specific reasons for the nationwide power rationing in 2021? Why is the country rationing electricity?

First, what are the reasons for the 2021 nationwide power rationing?

1. National power rationing reason 1: coal prices rise

Coal is usually used in thermal power generation, and I believe many people do not know how exaggerated the price of coal this year. In May, it was 500 yuan/ton, but in September, it rose to 1,400 yuan/ton. Because coal prices have risen so much, a coal-fired power plant is now losing millions of dollars a day. Coal prices have been high this year, and power plants have less coal in storage. Power plants save less coal resulting in limited power generation, the emergence of power supply tension.

2. Cause 2: Dual control of energy consumption

Recently, the National Development and Reform Commission issued a circular to further improve the dual control of energy consumption, clarifying the overall arrangement of the dual control of energy consumption, requiring all regions to take strong measures to ensure that the annual dual control of energy consumption, especially the reduction of energy intensity target task. Therefore, in order to achieve the goal of energy consumption reduction, the first and second warning provinces and cities from top to bottom to implement, and constantly increase the code, so that power rationing and production suspension become a reality.

3. Reason three for nationwide power rationing: economic transformation

Power rationing can also speed up the elimination of outdated capacity and industrial structure upgrading. In the critical period when global trade is increasingly dependent on China, foreign trade enterprises can be forced to take the initiative to raise prices, increase their bargaining power, prevent the disorderly expansion of production capacity, and maintain strategic focus in the critical period when inflation is serious in other countries.

4. Cause four: typhoon

Workers at a coal plant in Guangdong province say they are running out of coal due to the twin typhoons that have battered coastal areas since September and are already operating at a loss.

Second, 2021 why the country to limit electricity?

Large-scale power-using factories adopt mandatory power cuts for one day a week, 7 days a month, and even serious  for 1 day work ,1day stop.

In the past two days, cartons、packaging bags and chemical additives factories have raised their sales prices due to power cuts. The processing of seafood is essential to these needs, which means that processing costs will increase.

We predict , the price of frozen seafood in China will rise in the future.

In general, the reason for the 2021 nationwide power rationing is the national energy consumption double control policy, coal price rise, economic transformation and other reasons, while the national power rationing is to ensure the completion of the 14th five-year energy conservation binding targets and promote the realization of carbon peak carbon neutrality targets.