onsdag 3. november 2021

China’s coal shortage eases after Beijing steps in, report says

China’s coal shortage is easing thanks to new government policies, the Commonwealth Bank of Australia said in a note Tuesday. According to the report, the number of Chinese provinces with significant power shortages fell to two in mid-October — down from 18 at the start of the month. The bank said that’s based on a shortfall in supply versus demand of more than 10%. “The number of coal power plants with dangerously low coal stockpiles (less than 7 days) has also decreased by 90% in the same time frame,” the analysts said.

China’s coal shortage worsened in September, which prompted local authorities to abruptly announce power cuts for many factories. As a result, factory production dropped, prompting several economists to reduce their forecasts for GDP growth.