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Increased Material Cost Plus Dual Control on Energy Consumption

Increased Material Cost Plus Dual Control on Energy Consumption

On Sep 22th 2021, National Development and Reform Commission said in recently issued plan, China will firmy control energy-hungry and high-emission projects.


The plan aim to improve China's "dual control system" on energy consumption and energy intensity, or the amount of energy consumped per unit of GDP. Since China established the targets of carbon peeking by 2030 and carbon neutralisaion by 2060 (hereinafter reffered to as the "dual carbon target"), domestic local governments have gradually increased the dual control process on energy comsumption. The imbalance between supply and demand of commodities caused by power rationing has drove up the prices and manufacturing costs rapidly.


Our tube manufacturers informed us that their city government has limit on the daily power use, so the production speed becomes slower than before. For new enquiry, the increase on tube billet also made the finished tubes be more expensive than before.





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