The spread of drought in the southwest affects the non-ferrous metal industry in the arid region

Since the beginning of this year, the ongoing drought in the five provinces of southwest China has seriously affected China's economy. For the southwest region, in addition to agriculture, non-ferrous metal enterprises are also more affected by it. A considerable number of non-ferrous metal enterprises have stopped production due to lack of water and electricity, and frequently issued early warning signals.

Due to the extreme drought, the supply of coal has continued to be tight, and some provinces and cities in the southwestern region have had to cut off electricity. The non-ferrous metal industry is a major consumer of electricity, and naturally suffers from a higher ratio of power cuts than other industries. Therefore, it is also the most affected.

Yunnan Province of China is a major province for the development of non-ferrous metals industry, and its output value ranks second in the country. In the face of drought, the non-ferrous metal industry in Yunnan Province is particularly concerned by the outside world and is also extremely representative.

Yunnan Chihong Zinc Co., Ltd. is the first enterprise in Yunnan Province to be listed as the first batch of circular economy pilot units in the country, and is also one of the 100 largest non-ferrous metal smelting enterprises in China. According to the relevant person of Chihong Zinc and é”— Securities Office, due to the drought, the company's power generation has been reduced compared with previous years, and the factory started in normal condition. However, if the upstream water quantity is out, it will affect the company's production and operation. The weather causes little impact on the company.

Yunnan Aluminum Industry Co., Ltd. is also one of the leading enterprises in Yunnan's non-ferrous industry. According to Zhang Wenwei, the company's secretarial secretary, the weather is currently not affecting the company, but if it continues to develop, it will have a greater impact on factory production.

Luoping Zinc Electric Securities related person believes that at present, the impact of drought on the current development of the company is not very large, but if it does not rain until the end of April or mid-May, the company will stop production.
 

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