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China Pushes Utilities to Restock Coal Ahead of Demand Rebound

  • Prolonged heavy rains threaten to snarl-up transport links
  • China forecast to produce a record amount of coal this year

China’s industrialized southern provinces are racing to restock coal in case demand recovers later this month or supplies are disrupted by the heavy rains sweeping the region.

The economic powerhouse of Guangdong has asked its utilities to add another 5% to inventories this month, according to local media, while neighboring Guizhou has set aside more money for coal purchases. At a meeting of the State Council on Wednesday, Premier Li Keqiang announced measures to help bolster nationwide energy supplies after reiterating that Beijing won’t allow provinces to cut off power to factories.