What're the trends of “dual control of energy consumption” after national holiday？

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What're the trends of “dual control of energy consumption” after national holiday？

Recently, the Zhucheng city in Shandong province released the Notice on implementing the "manufacture 4 days and stop Three days in one week" policy under the impact of “dual control of energy consumption”, saying that in order to cope with the tight power supply situation and effectively guarantee the safe and stable operation of the power grid. Although this is a case of a city, it is quite representative, and the energy shortage after our National Day has not been alleviated as expect.



Whether Yunnan, Jiangsu, and other regions stop production or Anhui, Shandong and other regions use electricity at different peaks, in essence, they are all aimed at meeting the requirement of energy consumption and carbon emission movement. For chemical enterprises, the reduction of operating rate and shortage of supply will inevitably lead to tight goods and high prices. Since the second half of the year, due to the tightening of "double control" of energy consumption, the price of raw materials has skyrocketed after the power cut and limited production. By the way, Anhui Province is the main producer area of solid epoxy resin, polyester, and TGIC curing agent, while Shandong, Jiangsu is the main province of liquid epoxy resin and polyester resin.


At present, the pace of "double control and double limitation" has not stopped, and the superimposed energy-side commodities such as coal, natural gas, and oil are in a hurry. What's more, with the implementation of the air pollution prevention and control law after October, the supply of chemical raw materials will become increasingly tight in the future, and the rising trend will still spread.
Considering the shortage of raw material and the potential there are five tips to survive for most medium and small factories.
1. Strengthen R&D activities and develop alternative materials or new processes to reduce the consumption of high-priced materials, such as replacing TGIC with HAA and replacing part of titanium dioxide with gray titanium powder.

2. Develop new suppliers, increase the bargaining power of enterprises and reduce procurement costs, such as introducing Niutang brand curing agent.
3. Keep close communication with suppliers, place orders when the price is adjusted back, and make a small purchase plan with high frequency to reduce the purchase cost.
4. Coordinate with the end customers, and adjust the process and formula to reduce the production cost while keeping the performance unchanged.
5. Promote lean management, reduce waste and increase profit.
For more details and contact the author, please follow below contact
Bruce Wong  Marketing &business developing manager
Cell: +86 13951823978 (WeChat, WhatsApp, skype)
Emil: bruce@jsheru.com/achemsuppliers@gmail.com
website: http://www.heruchem.com/EN/
Personal website： www.linkedin.com/in/chemsupplier
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