China’s Coal Prices Surge as Scorching Heat Drives Power Demand | OilPrice.com
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Scorching summer heat and renewed supply concerns are pushing up coal demand and thermal coal prices across China.

Coal demand and prices in China have jumped in recent days as scorching heat waves across most of the country boost electricity demand.

The benchmark spot coal prices at the port of Qinhuangdao have erased a slump from earlier this month and are on track for further increases in the coming weeks amid intense heat, according to the China Coal Transportation and Distribution Association.

[…]

Most of central and eastern China are in the grip of high summer temperatures, while northeastern China, including the large cities of Beijing and Shenyang, is expected to see unusually high temperatures into this weekend.

Heat waves are also depressing hydropower output and wind power generation, which China will have to partly offset with increased coal consumption.

China’s coal inventories are sufficiently high, but its domestic production has seen setbacks since the deadliest mining disaster in 16 years in May prompted authorities to step up safety checks and order suspension of activities in a number of mines in the Shanxi region.

[…]

Meanwhile, thermal coal futures climbed to around $134 per ton in late July, reaching more than one-month highs as coal demand in China strengthened after a relatively mild start to summer gave way to hotter weather, boosting air conditioner use and electricity consumption.

[…]

[While China recently announced that it generates less than half of its electricity from coal, the countries coal consumption is set to rise.]

Chinese authorities are not restricting coal power growth in the new five-year energy plan as Beijing doubles down on the fossil fuel as a “bottom-line guarantee” of the electricity system amid rising shares of renewable power.

[According to the five-year plan, coal consumption in China will rise by 8-10%. China is already the world’s larges coal producer and consumer.]

  • HotznplotznOPEnglish
    12·
    1 day ago

    China continuing their trajectory to start phasing coal out in 2030

    China still lacks a coherent coal exit strategy. There is also no clear commitment in the current 15th five-year plan to call a halt to coal expansion (while it says that fossil fuel energy consumption would increase by 8-10%, reversing the slow-down in fossil fuel energy consumption during the 14th FYP period). This comes form the Chinese Communist Party.

    You are making unfounded statements out of literally nothing, sometimes even in direct contradiction to the Chinese government itself. What you are saying is complete fantasy.

      • HotznplotznOPEnglish
        11·
        1 day ago

        “Planners have set a deadline for coal consumption to peak no later than 2030

        Dude, do you understand the difference between ‘to peak’ and ‘to phase out’?

        That aside, even if the coal’s share of the power mix was less than half in China in June, the total volume of coal-generated electricity has increased. This is not good news.

        But there is no coal exit strategy in China.

        And let me say that it’s not that you are wrong. We all tell bullshit from time to time. What’s absolutely weird and unacceptable is your way to communicate and your tonality. It’s this complete disconnected world view and often ridiculously false narratives paired with a weirdly stubborn I-know-it-better-than-anyone-else attitude.

        I end this discussion now. Believe whatever you want.