China’s Coal Bounty to Keep Prices in Check Over Peak Season
- Market’s oversupply has worsened in recent months, says CCTD
- Demand for power is lackluster as Chinese economy sputters
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China’s abundance of coal is likely to forestall power outages and suppress prices, even as the country heads into what’s typically a peak season for consumption.
Record supply, from domestic mines and imports, and flagging industrial demand have combined to create an “avalanche” of stockpiles, according to the China Coal Transport and Distribution Association. The likelihood of milder weather is also bolstering optimism that power to homes and factories will be uninterrupted over the winter — and adding to the gloom around prices.