A power crunch, triggered in part by Chinese efforts to reduce emissions, has contributed to disruptions to the country’s whitefish-processing sector, according to Spanish sourcing firm Interatlantic, which operates offices in China.
“The Chinese government continues to restrict the supply of electricity to all industry in the country, which is even affecting households,” the company’s Dalian office said in a note to global customers. “An estimated 44 percent of industrial activity has been affected. The production plans of Chinese plants are being altered and prolonged; many have stopped accepting orders as it is impossible for them to meet those they already have.”
Worsening the situation for China’s processors have been long delays at Chinese ports due to an enhanced COVID-safety protocol, and a monthlong COVID-19-related shutdown of factories in Dalian, a major seafood-processing hub in China. However, the latest news from the city is more positive, according to Nantong-based sourcing consultancy Ocean Treasure.
“Dalian was adjusted to be a low-risk area at midnight on 4 December," it reported in a note to clients. "The highway has been open again and resumed operations. Moreover, ordinary public transportation, in the Zhuanghe area, which was affected by the epidemic, also resumed operations. Dalian city has had no new cases for 16 consecutive days!”
Processing factories and cold-chain facilities are “actively corresponding to the government’s self-examination and rectification status,” Ocean Treasure said.
“They are preparing to resume the production, but we still need to wait for further information from the government when the cold-chain related enterprises can resume work,” it said.
Interatlantic, in its 2022 prognostication, predicted longer-term issues related to energy reliability in the Chinese processing sector.
“While the country is turning to coal and plans to set up nuclear reactors to alleviate the effects of this energy crisis, there is talk that it will last at least until the Chinese New Year and may continue through much of 2022,” it said. “One of the main reasons for this crisis is the drastic rise in the price of raw materials, due to the fact that in 2020 [global] energy exports far exceeded expectations, so that reserves are currently at a minimum.”
Photo courtesy of Ihor Sulyatytskyy/Shutterstock
