The smog pollution is very heavy in North China like Shandong and Hebei, and to mitigate such situation, many warp sizing plants and printing and dyeing plants are required to shut down temporarily as many of these plants are fueled by coal which will discharge waste gas to the air and further cause air pollution. Affected by these, sales of yarn and grey fabric are impacted as warp sizing plants and printing and dyeing plants are their downstream sector, and many spinners and weavers are forced to suspend production with poor demand. Actually, government has intensified environmental protection from around mid-November when the heat supply starts in North China under low temperature.
Besides, some factories that are fueled by natural gas are also required to limit production as government limits electricity supply. Intensified requirement on environmental protection is expected to continue at least into the end of December. Most factories are not expected to maintain production in January with the coming of Spring Festival holiday. By the way, due to environmental protection issue in Hebei, part of weaving plants turns the warp sizing, printing and dyeing operation to Shandong, so the costs are heard to increase by nearly 30%.
According to the website of CNR today, about 1,767 factories in Shandong were asked to close temporarily and 1,399 companies were required to limit production amid heavy smog pollution but no details about the companies were disclosed. Traffic controls were also carried out, and schools were asked to stop having class.