Due to the unusually persistent hot weather, electricity demand increases greatly, and power rationing policy was used in many provinces, such as Sichuan, Chongqing, Zhejiang, Jiangsu, Hubei, Anhui. Thus, many enterprises get power cut or notification of off-peak power consumption.
The power cuts have already crippled industrial production in textile field. For example, a polyester factory was expected to be in peak season in August, while it production dropped again, reducing to around 50% because of the power cuts. Another polyester manufacturer in Shaoxing, which was slightly negative last week due to the recovery of cash flow, reduced its capacity again under the power rationing policy. In mean time, a polyester manufacturer in Hangzhou stop to increased its capacity. The recent downstream continued to be weak, although the power rationing makes the filament load sightly down, but give polyester manufacturers a time to ease the inventory pressure.
A downstream enterprise in Zhejiang is under capacity, meeting difficulties to deliver the goods in time, and it choose enterprise in Henan and Shangdong provinces as OEM.
Events like epidemic and power cut influenced the textile market greatly, but the epidemic is stable and dynamic zero elimination is gradually normalized, the downstream demand many rebound in the second half of this year. Moreover, this high temperature weather is largest in the history of the same period since 1961. It brings hard time to the polyester upstream and downstream enterprises, but also stimulated the downstream weaving, loading enterprises start working and recovery of demand again.
English
