Chinese Demand For Coal Grows

Coal prices in China are resuming their climb as China’s store are depleting. China is the world’s largest user and producer of the or. A drought lasting nearly six months in southwestern China has cut water available for hydropower generation. This has caused an increased demand for coal fired electricity, and has caused China to start buildng up its coal reserves.

Inventories at the nation’s largest coal port, Qinhuangdao, have dropped nearly 44 percent. Elsewhere in the country, the province of Shandong has ordered utilities to increase stockpiles of coal to 30 days of consumption up from 15.

Here at home, anticipation of a hot summer are having similar effects as several states including Georgia, North Carolina and Texas, have recently spent billions importing coal from surrounding areas to help beat the heat.

BenZinga.com