Asian Stock Markets
China’s thermal coal futures hit record highs on Monday after four top
utilities warned of potential heating and electricity shortages and as
the worst blizzards this winter continued to blast some central and
southern provinces.
Last week, China’s State Power Investment Corp (SPIC), China Datang Corp, China Huaneng Group and China Huadian Corp asked the government to boost supplies of coal and temper a months-long rally in prices.
The most-active futures were up 1.1 percent at 677.2 yuan ($107.04) per tonne at 10:41 a.m. (0241 GMT), after earlier touching 679.6 yuan, their highest since the contract began in 2015.
Thermal coal futures have jumped over 10 percent this year, extending a months-long rally, as utilities rush for supplies to deal with soaring power demand as cold weather sweeps across swathes of the nation.
Renewing worries about the country’s winter heating crisis, Jiangxi and Hunan provinces have introduced power rationing to industrial users due to heavy snowfall, with snowy storms also striking parts of the provinces of Anhui, Jiangsu, Zhejiang, Hubei and Hunan.
In Jiangsu, the authorities posted a letter dated Jan. 26 on their website asking utilities to ensure sufficient power for heating because of bad weather and snarled transportation.
The province has 7.46 million tonnes of coal inventory, enough for 13 days of demand, but seven utilities have less than seven days of stock, the notice warned.
Chinese utilities are under particular pressure this winter because of low natural gas supplies after Beijing ordered millions of households and some industrial plants in northern China to change to gas heating from coal as part of its war on pollution.
Last week, China’s State Power Investment Corp (SPIC), China Datang Corp, China Huaneng Group and China Huadian Corp asked the government to boost supplies of coal and temper a months-long rally in prices.
The most-active futures were up 1.1 percent at 677.2 yuan ($107.04) per tonne at 10:41 a.m. (0241 GMT), after earlier touching 679.6 yuan, their highest since the contract began in 2015.
Thermal coal futures have jumped over 10 percent this year, extending a months-long rally, as utilities rush for supplies to deal with soaring power demand as cold weather sweeps across swathes of the nation.
Renewing worries about the country’s winter heating crisis, Jiangxi and Hunan provinces have introduced power rationing to industrial users due to heavy snowfall, with snowy storms also striking parts of the provinces of Anhui, Jiangsu, Zhejiang, Hubei and Hunan.
In Jiangsu, the authorities posted a letter dated Jan. 26 on their website asking utilities to ensure sufficient power for heating because of bad weather and snarled transportation.
The province has 7.46 million tonnes of coal inventory, enough for 13 days of demand, but seven utilities have less than seven days of stock, the notice warned.
Chinese utilities are under particular pressure this winter because of low natural gas supplies after Beijing ordered millions of households and some industrial plants in northern China to change to gas heating from coal as part of its war on pollution.
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