One of China's heaviest industrial base in the east, Shandong province has recorded its greatest power shortage in a decade, which worsened to as much as 10.22 gigawatts (GW) on 30 Aug, a gap of almost 1/3 of the province's maximum demand. According to local power supply plants, 5 out of 8 generators have been idled due to limited coal supply, as the coal mines are severely short in supply and fall in quality. Since May of this year, many industrial firms were forced to cut their hours of power usage in order to ensure electric power for local residents and key users linked to national security.

The power supply tightness is unlikely to ease as demand is expected to increase along with rising summer temperatures while coal stocks were unlikely to fulfill in short term. It will undoubtedly bring impact to all manufacturing industries.

The State Administration of Taxation (SAT) and Ministry of Finance (MOA) publish a new policy on the official website that 40 export products' tax refund has cancelled from 2008-8-1 ; it means these products' tax refund has been adjusted from 5% to 0%. Dicofol, warfarin, methomyl, thiodicarb, carbofuran, acephate and other agrochemicals are in the list. These agrochemicals is “high-polluting, high environmental risk” products, The State Environmental Protection Administration of China has urged SAT and MOA removed export tax rebates for the listed products and ban the processing trade (refer to Psyche news on 2008-3-7 ). We estimate this adjustment could make a 6% rise of export price to these products at least.

name of products

1 dicofol, chlorobenzilate, bromopropylate

2 sodium diphacinone, diphacinone, chlorophacinone Na

3 isofenphos-methyl, acephate

4 methomyl, thiodicarb, aldicarb, ethiofencarb, oxamyl, methiocarb and so on

5 warfarin, brodifacoum, flocoumafen, coumatetralyl, difenacoum and so on

6 coumaphos, santonin, bromadiolone, ofurace, thifluzamide, fthalide and so on

7 carbofuran