"Dark Horse" Spot Silicon Manganese Soared 12.28% This Week, page-143

The power crisis in China is doing wonders for the prices of ferrosilicon and manganese alloys. This won't be a temporary blip but a major move that will have a lasting impact.

It is rumored that the CCP intends to raise electricity tariffs in Hunan and Guangdong to launch floating electricity prices

The picture shows a coal-fired power plant in Anhui Province in August 2011. (STR/AFP via Getty Images)
Beijing Time: 2021-10-01 04:30
[New Tang Dynasty Beijing October 01, 2021] The power shortage in China continues to spread. Bloomberg News quoted news that the CCP is considering raising electricity prices to alleviate power shortages. A few days ago, Guangdong Province and Hunan Province both introduced "floating electricity prices" to increase industrial electricity prices. Scholars analyze that rising electricity prices may trigger hyperinflation.
China's power shortage has led to power curtailment measures in many provinces, and the unwarned power outages in the Northeast have caused even more public grievances. According to Lu Media reports, one of the main reasons for the lack of power is that coal prices have soared and power plants have voluntarily reduced production in order to reduce losses.
Bloomberg News quoted people familiar with the matter on September 29 that the Chinese Communist Party is considering increasing the price of industrial electricity in order to alleviate the power shortage. The adjustment method may be a unified increase in electricity prices, or a step-by-step adjustment under the framework of coal and electricity linkage.
People familiar with the matter also said that if the increase in industrial electricity prices still does not solve the problem, the authorities will also consider raising residential electricity prices. However, the plan has yet to be approved by the senior management, and there are still variables.
According to Lu Media reports, as early as August 31, the Guangdong Provincial Development and Reform Commission of the Communist Party of China issued a notice to increase industrial power consumption during peak hours. The notice divides the power usage period into "peak", "valley", and "flat" periods. The peak period is from 10 am to 12 am and from 14:00 to 19:00; the trough period is from 0 am to 8 am; the rest of the period is flat. .
According to the notice, the "peak" electricity price will be increased by 25% from the basic electricity price. This policy was officially launched on October 1.