Analysts believe the price rally was caused by a countrywide blizzard that blocked highways and boosted heating demand. Utilities warn of potential heating and electricity shortages.
31 Jan 2018 – China’s four major power generation groups say they are facing pressure due to tight gas and coal supplies and have warned of potential heating and electricity shortages as blizzards continue to buffet some central and southern provinces.
The four top utilities asked the National Development and Reform Commission to increase coal supplies and regulate, reduce coal prices after snowstorms sweeping across central and southern provinces led to major losses for the thermal power sector.
Thermal coal futures have jumped over 10 percent this year as utilities deal with soaring power demand dues to the cold weather swept across swathes of the nation.
China’s thermal coal futures hit record highs on Monday.
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