Power crisis in China will continue till next year, coal prices increase Jinping’s tension

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Beijing
The coal shortage is expected to deepen further. Despite record purchases, coal prices in China have tripled this year. China’s total coal imports increased by 76 percent in September. Despite this, China’s power plants are not getting enough coal. In such a situation, experts believe that China, which pretends to be the world’s second largest economy, may have to suffer heavy losses.

Coal price tripled in China
The price of a ton of coal in China has reached 1,640 yuan (Rs 19172). Coal price setter Zhengzhou Thermal Coal Futures touched 1,640 yuan in trading on Wednesday. Now Chinese power companies will be able to decide the price of electricity according to the fluctuations in the price of coal and the demand in the market. Obviously its biggest loss will be to the common citizens of China.

Flood spoiled the mathematics of sugar coal production
According to a Reuters report, supplies to power plants have been disrupted due to floods in Shanxi, a major coal-producing province of China. In such a situation, the power shortage and power cut may continue till early next year. China, the world’s biggest coal consumer, is grappling with a growing energy crisis caused by fuel shortages and record prices.

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Government gave arbitrary exemption to power companies
The Chinese government has taken several steps to boost coal production and manage electricity demand in industrial plants. With government efforts, power producers and other coal users are accelerating the import of coal from abroad. The Chinese government has allowed coal-fired electricity power plants to raise and lower prices depending on the price and demand for coal.

Coal imports up 76 per cent in September
In September last month, China’s coal imports reached the highest level of this year, according to data released on Wednesday. Coal imports totaled 32.88 million tonnes in September, up 76 per cent from a year ago. Data from the General Administration of Customs showed that China will continue to import coal at a rapid pace in the coming days.

order to increase coal production
Local governments in China’s coal-producing regions of Shanxi and Inner Mongolia have issued orders to 200 mines to boost production. However, incessant rains have flooded 60 mines in Shanxi. A Shanxi official said on Tuesday that four mines with a coal production capacity of 4.8 million tonnes per annum were closed due to the floods.

[Attribution to NBT]

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