Posted on 09 Feb 2022
China's National Development and Reform Commission (NDRC) expressed its satisfaction in a WeChat post on February 8 at the country's daily coal output, shipment volume and supply to the end-users during the Chinese New Year holiday, noting that all had been above the respective levels around the corresponding period of the previous years.
Since February 3, the country's coal output has been recovering steadily, and by now it has recovered to the pre-CNY level and coal stocks at the coal-fired power houses under the coordination of the national grid have exceeded 165 million tonnes, or 40 million tonnes higher than the corresponding period of 2021, according to the latest post. The volume was slightly lower than over 170 million tonnes as of January 26, Mysteel Global noted from NDRC's WeChat sharing on January 27.
"Acceleration in coal output while lower demand for coal from central heating services will see China's coal supply to improve further," NDRC commented briefly in the February 8 post.
The commission did not share specific output volume or daily consumption by these power houses on February 8, but daily coal consumption by these power houses already showed signs of decreasing, down 9% or nearly 700,000 tonnes on week to about 7.15 million tonnes as of January 26, according to NDRC.
In the long run, to enhance the stability and at the same time flexibility in the country's power supply and prices, China's central government will speed up the reform in the domestic power pricing mechanism by gradually introducing market pricing to all the domestic industrial and business enterprises, NDRC shared in a post on January 30.
Starting last October, NDRC has already introduced flexibility to the power charges through the national grid, widening the power charge fluctuation to 20% from a cap at 10% and a 15% cut limit to power use other than in the households and farming.
Source:Mysteel Global
