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Frigid Chinese Winter Sees Power Shortages, Diesel Use Spike

  • Small factories seek backup power as home heating prioritized
  • This could lead to rise in off-spec diesel demand: traders
Gasoline And Diesel Prices Rise

Photographer: Costfoto/Barcroft Media/Getty Images

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A frigid winter is leading to power shortages in parts of China, driving up demand for diesel as factories rush to install generators to keep the lights on.

Some provinces have started rationing electricity to industrial and commercial users to make sure there’s enough power to heat homes during a colder-than-typical winter. That’s prompting factories to snap up portable generators and the diesel they run on to ensure their plants stay open to meet orders amid record-high exports from the country.