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AL CIRCLE

Winter chill grips China's Henan province, sparks heating shortage crisis; Aluminium industry bears the brunt

EDITED BY : 3MINS READ

Multiple cities in the central Chinese province of Henan are grappling with a shortage in winter heating supply following the passage of a cold wave that has swept through a significant area, causing blizzards, and pushing temperatures to nearly record-breaking lows.

Winter chill grips China's Henan province, sparks heating shortage crisis; Aluminium industry bears the brunt

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Extended periods of cold weather have posed challenges for thermal power providers in Jiaozuo, a city in Henan. A malfunction in the heating boilers of a major supplier has resulted in some areas requiring additional heat supply.

Aluminium industry suffers

JiaoZuo WanFang Aluminium Manufacturing, the supplier, is working urgently to address the malfunction and anticipates a resumption of supply by December 26, as reported by state media on December 24. The report did not specify the quantity of boilers affected by the breakdown. WanFang Aluminium has yet to provide a prompt response to a request for comment from Reuters via email.

The city is set to halt heat supply for the majority of businesses, excluding essential service providers like hospitals and senior centres, in order to prioritise residential heating needs. Despite this, certain residential compounds will experience disruptions during the maintenance period, as reported by the media.

In addition, the cities of Puyang and Pingdingshan in Henan have already implemented heat supply suspensions for government departments and administrative institutions, citing exceptionally cold weather and emphasising the prioritisation of residential heating.

On December 24, the weather forecast indicates sub-zero temperatures in three cities. The weather authority in Henan, a central province, reported that temperatures in various areas within the region are expected to drop to a minimum of minus 15 degrees Celsius over the weekend, as stated on December 23.

Let us know more about JiaoZuo WanFang Aluminium Manufacturing Co.

JiaoZuo WanFang Aluminum Manufacturing Co., Ltd, based in China, specializes primarily in the smelting and processing of aluminium products. The company's core offerings include aluminium liquid, aluminium ingots, and various aluminium alloy products. In addition to its focus on aluminium processing, the company is involved in power generation and the manufacturing and distribution of alloy products. JiaoZuo WanFang Aluminum primarily operates within the domestic market, with a particular emphasis on Henan Province, China.

November review
In South China, suppliers were eager to lower prices in response to sluggish demand and a pessimistic outlook. Meanwhile, in Guangxi and Guizhou, regional supply faced constraints due to a shortage of raw materials, providing some support for prices. In North China, suppliers adopted a cautious approach as regional supply was anticipated to decrease during winter, resulting in a market price stalemate.

On the supply side, there was a reduction in alumina supply due to constrained production in North China. Regarding demand, the aluminium industry experienced simultaneous output cuts and increases. Overall, the operational rate declined in the last week compared to the 3rd week.

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EDITED BY : 3MINS READ

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