On Thursday, the state-planning agency, the National Development and Reform Commission said that China will release more than 10 million tonnes of coal from its state reserves, with the potential for further releases in line with market demand.
Coal has been released from Chinese state reserves four times so far this year, amounting to 5 million tonnes in total, although these figures are tiny in comparison to China's raw coal production which was estimated to be around 320 million tonnes in June, according to S&P Global Platts Analytics.
"The NDRC has announced plans to try and reduce domestic coal prices, so the release of additional volumes could be in response to this and to potentially ease the rise in domestic coal prices," said Matthew Boyle, head of coal and Asia power at S&P Global Platts Analytics.
China's thermal coal imports used for energy generation, for which Australia has traditionally been a significant supplier, hit 115 million tonnes between January to June, down around 21 million tonnes year on year, according to S&P Global Platts Analytics.
Dennis Ip, the regional head of power, utilities, renewables and environment research at Daiwa Capital Markets, said the NDRC's release of its coal reserves will partially relieve the shortage issue in the summer peak season, given that the inventory at China's main Qinhuangdao coal transshipment port remains low in July.
"We expect China to continue increasing coal imports from Mongolia, Russia and Indonesia instead of Australia, as China has yet to lift the ban on Australia coal," said Ip. Going forward, Platts Analytics believes China is likely to rely on domestic coal supply rather than boosting seaborne coal imports, forecasting China's thermal coal imports will fall by 68 million tonnes to around 164 million tonnes in 2021.
In April, the NDRC urged power plants, mines and major transport hubs to boost coal reserves, while it also pledged to build stockpiles to more than 120 million tonnes in 2021.
It's becoming increasingly difficult to discern fact from fiction, and unfortunately the media has a strong bias. They spin stories to make conservatives look bad and will go to great lengths to avoid reporting on the good that comes from conservative policies. There are a few shining lights in the media landscape-brave conservative outlets that report the truth and offer a different perspective. We must support conservative outlets like this one and ensure that our voices are heard.
Friday, July 16, 2021
China To Release 10 Million Tonnes Of Highly Polluting Coal From Reserves
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment