https://www.miningweekly.com
Coal|Energy|Gas|Power|rail
Coal|Energy|Gas|Power|rail
coal|energy|gas|power|rail

Covid in China’s coal hubs crimps supply as winter demand looms

19th October 2022

By: Bloomberg

  

Font size: - +

China’s two biggest coal-producing regions have been hit by virus flare-ups and lockdowns that are disrupting supplies and boosting prices for the country’s mainstay fuel as demand picks up heading into winter.

In Datong, Shanxi province, a key rail route hauling coal eastwards saw volumes shrink as much as 30% because of crew shortages, the China Coal Transportation and Distribution Association reported. Some parts of Datong were locked down October 11, and dozens of rail workers on the line to Qinhuangdao were among more than 100 new virus cases reported on October 17.

Meanwhile, coal sales in Ordos in Inner Mongolia fell over the past week after the city implemented a 3-day lockdown, according to the report.

The pinch on coal supplies is unlikely to trigger shortages, given the country’s intense push to boost inventories ahead of the winter. But it does show how President Xi Jinping’s zero-tolerance approach to Covid-19 is affecting diverse parts of the world’s No. 2 economy.

Spot prices for coal in Qinhuangdao have risen due to both falling temperatures as well as tighter supplies because of the Covid flare-ups, Morgan Stanley analysts including Sara Chan wrote in a note Tuesday. The price climbed 2.2% to 1 558 yuan a ton on October 17, she wrote.

Shaanxi, China’s third-biggest coal producing region, warned local miners of harsh punishments should they raise prices too high or purposely curb production in the hope of making higher profits later, according to an official statement cited by local industry publication Yulin Coal Web.

The latest count of new daily infections from the regions, on Tuesday, was 72 in Inner Mongolia, 59 in Shaanxi and 45 in Shanxi. Added up, that was about 20% of the country’s total.

China has stepped up efforts to ensure energy supply ahead of what might be a colder-than-normal winter, including ordering liquefied natural gas importers to stop reselling cargoes to other buyers and instead direct them to the mainland.

And coal stockpiles at major power plants are at about 170-million tons, nearly double last year’s levels, Ren Jingdong, vice head of the National Energy Administration, said Monday at a press conference.

 

Edited by Bloomberg

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.132 0.168s - 108pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: