Excerpt from: China Supply Chain and Logistics Strategy
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| January 29, 2008 | | Production of Aluminum, a high energy production, has been shut down in Guizhou due to bad weather which has impacted energy production. Power is being diverted to households and essential businesses during the Chinese New Year. | The bad weather in China and power shortages has shut down one tenth of China’s metal smelting capacity, 700,000 – 800,000 tonnes. Production is not likely to be restored till the middle of February. Guizhou is the area which is most affected due to power companies cutting power to high energy sources. Power is being redirected towards households and essential businesses for the Chinese New Year. The loss for the Guizhou Aluminum industries is 290 million Yuan ($40.31 million) per week. Aluminum prices on Tuesday increased by 2.4 percent in Shanghai, which is the biggest increase since November. China could start importing Aluminum if power disruptions decrease their production opportunities. Last year exports decreased 81 percent to 161,000 tonnes. | | |
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