SOURCE / ECONOMY
Heater makers ready for potential US demand boom amid high energy prices, storms
Published: Feb 01, 2023 10:37 PM
National Grid technicians work in Buffalo, New York, on December 26, 2022. Emergency crew in New York was scrambling to rescue marooned residents from what authorities called the

National Grid technicians work in Buffalo, New York, on December 26, 2022. Emergency crew in New York was scrambling to rescue marooned residents from what authorities called the "blizzard of the century," a relentless storm that has left at least 25 dead in the state and is causing US Christmas travel chaos. Photo: AFP


Chinese heater makers are preparing for a potential boom in demand from the US amid high energy prices and power disruptions due to winter storms.

A sudden cold wave has pushed up energy prices in the US, adding to the burdens of many households. Cost-efficient Chinese heating-related products, which have gained a foothold in Western markets, could see a new boom in the US, industry insiders said.

A heating device maker in the city of Cixi, a production hub for heating equipment in East China's Zhejiang Province, told the Global Times on Wednesday that they have received more inquiries from abroad including the US in recent days, which may be partly related to extreme weather in the US.

"There are no actual orders from US clients at the moment, but our production capacity is adequate to meet any potential demand rise," he said.

The weather has caused the cancelation of more than 1,700 flights and closures of major highways. More than 40 million people from the US states of Texas and Oklahoma to Kentucky and West Virginia have been warned to brace for ice and wind chills, the UK Daily Mail reported on Tuesday.

The extreme weather has also driven up US energy prices, which were already high due to Western sanctions on Russia.

Costs are up across the board compared with last winter - nearly 26 percent for heating oil, 14.5 percent natural gas and 10.5 percent for electricity, CNN reported on Monday. 

"Chinese heating products offer value for money due to our complete and mature supply chains, which enable us to do mass production while minimizing costs," the producer told the Global Times.

Midea, another major electronics producer, is also gearing up to respond to demand in the US for cheaper and cleaner heating products, with more cooperation on tap.

Midea was designated as a primary partner by the New York City government to develop and deliver 20,000 cold-climate packaged window heat pump units for use in New York City Public Housing facilities, with the twin goals of better serving the heating and cooling needs of existing multifamily buildings and helping expedite the transition away from fossil fuels, according to a statement that the company sent to the Global Times on Wednesday.

The affordable room-sized heat pumps of Midea meet existing specifications for cold climates and do not require any modifications to buildings, Midea said. The products can be operated using a standard 120-volt outlet.

In addition to New York City, Midea's products have already attracted the attention of many American urban power companies and public utilities across the country, and they are all interested in large-scale application of their corresponding products, according to the company.

China is the world's largest producer of small heating appliances including heating devices. As early as last year, affected by the Russia-Ukraine crisis, Chinese heating equipment became popular in Europe and the US, with the latter being a major market.

For example, from January to August last year, China's exports of electric heating blankets to the US accounted for nearly 60 percent of the total, while exports to 33 European countries accounted for less than 20 percent, according to media reports.

A study has predicted that strong demand for Chinese heating devices will persist in 2023.

In 2020, China's heating appliance market was worth 54.85 billion yuan ($8.14 billion), and it is expected to reach 82.9 billion yuan in 2023, industry research network Chinairn.com reported.

In the next five years, it may continue to grow at an annual compound rate of 12.8 percent, the report said.