China Takes Advantage of Cheap Gas and Coal to Rebuild Stocks
- Coal production drops for the first time in four years
- Power consumption expected to increase 8% in first half
Stockpiles of coal at the Caofeidian Port in Hebei Province.
Source: Bloomberg
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China is taking advantage of lower international prices for coal and natural gas to replenish stockpiles of power fuels ahead of another long, hot summer.
Gas imports through the end of April jumped 21% from the previous year, while coal purchases climbed 13%. The increase in coal in particular has defied predictions that imports would moderate from last year’s record-setting pace, and comes after domestic production posted its first quarterly drop since the third quarter of 2020.