Shanxi power crunch hits calcium carbide output

14 July 2008 15:14  [Source: ICIS news]

SHANGHAI (ICIS news)--A power crunch caused by coal shortages and price rises has forced the calcium carbide industry in China’s northeastern Shanxi province to reduce operating rates to around 50%, impacting the output severely, producers said on Monday.

“Our current operating rate is only 50-60% due to heavy power restrictions,” a local producer said in Mandarin. "Most calcium carbide plants could not operate normally from 5:00am to 9:00pm (local time) as there is no electricity during this period."

Shanxi province, which produces one-fourth of China's coal output, has lost approximately 5m KW of power, the highest level recorded in recent years.

“This year, the power crunch is very severe. In some places, even the power supply for street lamps was unavailable,” another calcium carbide producer said.

"We have to rush operation during night, hurting output and quality naturally."

Calcium carbide surged yuan (CNY) 300-400/tonne ($44-58/tonne) to CNY4,000-4,100/tonne EXW (ex-works) basis due to reduced output, traders said.

Calcium carbide output in Shanxi province was mainly supplied to local market and the markets in nearby Henan and Shandong provinces.

Carbide-based polyvinyl chloride (PVC) producers have also had to reduce operating rate in tandem amid tight supply and rising prices of calcium carbide, some PVC producers said.

Henan-based Shenma Chlor-Alkali Chemical Industry is operating its 200,000 tonne/year polyvinyl chloride (PVC) facility at around 60% capacity on tight feedstock supply, a company source said.

Some regions in China including Shandong, Zhejiang and Guangdong will also encounter power shortages in this summer, which could hit industrial production.

($1 = CNY6.84)

Penny Wang from CBI contributed to this article
For more on calcium chloride and PVC visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Judith Wang
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly