Two major coal industry associations in China called on coal miners to increase production and make emergency supply guarantee plans to ensure stable and sufficient coal supply during the peak demand season.
China National Coal Association and China Coal Transportation and Distribution Association urged miners to tap the potential of capacity, accelerate releasement of advanced capacity, and take measures to improve the availability of supply of thermal coal for power generation.
Power consumption has surged in China this summer, particularly as heat waves scorch the region north of the Yangtze River.
The move aims to avoid power outage like what happened in 2021, which had caused a widespread factory shutdown and impacted economic growth due to a shortage of coal that generates 60% of electricity in China.
China is less likely to allow any widespread suspension of industrial activities as the country still sticks to its economic goals for the year.
China aims for a 5.5% growth in GDP this year, but economists cut their forecast to well below the government's target due to multiple reasons including the epidemic and tepid real estate sector.
The two coal associations also called on miners to improve the mid-and long-term contract supply fulfillment and ensure their coal prices within a rational range.
(Writing by Emma Yang Editing by Tammy Yang)
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