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Impact of Electricity Restriction on Textile Market

Power Rationing

The impact of power restriction on the textile industry is obvious, but from the upstream and downstream of the industrial chain, the impact is different. The impact of power rationing on the downstream is greater than that on the upstream, that is to say, the impact on the demand side is greater than the supply side.

For one thing, local governments and related departments have imposed relatively little power rationing on upstream textile devices because of the continuous production of these devices.

The second reason is that many upstream enterprises are local large enterprises or leading enterprises in the industry, which can generally enjoy the policy of “grasping the big and releasing the small” implemented by the local government and power supply department in terms of electricity consumption.

Third, at present, more than half of the domestic chemical fiber raw materials rely on imports, and the supply of imported raw materials has a relatively small impact on domestic power rationing.

The fourth reason is that China is a big textile exporter, and a considerable part of chemical fiber products are used to produce textile for export. Under the condition that the power supply is not guaranteed, the order acceptance of weaving enterprises will be greatly affected.

Power rationing may become normal.

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