
The Shanghai Metals Market reported on Thursday, January 5, that Guizhou Power Grid issued a new notice, stating the power load across the province continued to run at a high level due to the steep rise in heating demand for low temperatures. Therefore, the power shortage extended even after two rounds of restrictions on power consumption at aluminium smelters. The third round of energy rationing targeting the aluminium smelters is implemented to meet the peak demand in winter.

The new round of power rationing has so far ordered five aluminium producers, namely Guizhou Huaren New Material Co., Ltd., Zunyi Aluminium Co., Ltd., Guizhou Liupanshui Shuangyuan Aluminum Industry Co., Ltd., Guizhou Xingren Denggao New Material Co., Ltd. and Anshun Aluminium Co., Ltd., to cut their power consumption by 500,000 kilowatts together within the next five days, starting from January 5.
On December 13, Guizhou Power Grid issued the first notice to reduce the combined power load of 700,000 kilowatts on five aluminium smelters, which lasted for five days. The second notice was released on December 28, instructing five smelters to save a total power load of 300,000 kilowatts within the next three days.
The two rounds of power rationing saved a power supply of 1 million kilowatts, which could be converted to an annualized aluminium production capacity of 640,000 tonnes. The third round of rationing will need smelters in Guizhou to reduce aluminium production by about 300,000 tonnes.
According to SMM data, the operating aluminium capacity in Guizhou was about 1.35 million tonnes at the end of November 2022, which also included some of the new capacities. But the energy constraint imposed tremendous pressure on the production of new capacity, resulting in deferring or slowing the commissioning of their operations, including Guizhou Yuanhao's new aluminium project with a total of about 86,000 tonnes.
This ongoing process of rationing power consumption is most likely to affect aluminium output as the production restriction is unlikely to ease even after the smelters seek negotiation with the Power Grid.
Responses







