China's Sichuan, Chongqing resume power supply to industry

BEIJING, Aug 30 (Reuters) - China's Sichuan province and Chongqing city have resumed normal power supply for industrial and commercial usage, reported state broadcaster CCTV on Tuesday, reducing concerns over tight supplies of the battery metal lithium.

The southwestern province had rationed power to major users from Aug. 15 after drought hit hydropower generation while residents ramped up air conditioning to cope with soaring temperatures.

Production of energy-intensive refined metals were suspended, impacting about 5,000-6,000 tonnes of lithium salt output, around 10% of China's monthly average of the metal used in the fast-growing electric vehicle market.

Top Chinese lithium processor Tianqi Lithium Corp (002466.SZ) told Reuters on Tuesday its factory in Sichuan's Shehong city had resumed normal production.

Sichuan Yahua Industrial Group (002497.SZ) could not be reached for comment.

Aluminium producer Henan Zhongfu Industrial (600595.SS) said in stock exchange statements that its production gradually resumed from Aug.28.

Zinc smelters affected by the power shortage have also restarted, said Dina Yu, a zinc and lead analyst at consultancy CRU Group.

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Mai reports on the nonferrous metals markets in Asia. She writes about daily price movers, trends and forecasts for the copper, aluminium, zinc, nickel, lead and tin markets. She distributes a weekly newsletter here: https://bit.ly/2VMBkfp.Mai previously covered news from Vietnam.She graduated with an Economics and Business degree (Summa Cum Laude) from Lycoming College in Pennsylvania, US. She spent one year in London studying at the University of Westminster as an exchange student.Prior to Reuters, Mai worked as an intern at Ernst & Young in the auditing and consulting departments.