Coal futures surged to almost $150 a tonne in July, the highest level in a decade as a heatwave in Zhejiang, Jiangsu and Guangdong, China’s biggest industrial provinces has pushed the electricity consumption to unprecedented levels.
Meanwhile, local supply remains limited as drought knocked hydropower generation in Yunnan province, output restrictions remain in place in Shanxi production hubs amid tighter safety inspections and environmental curbs, and as a trade spat with Australia has crimped imports.
The local prices have risen almost 40% since the beginning of May as warmer weather boosted demand in Japan, South Korea, the United States, and production declined in Indonesia and Australia due to flooding.
Coal is the major fuel used for generating electricity worldwide.
The biggest producer and consumer of coal are China. Other big producers include United States, India, Australia, Indonesia, Russia, South Africa, Germany and Poland.
The biggest exporters of coal are Indonesia, Australia, Russia, United States, Colombia, South Africa and Kazakhstan.
Other big producers include United States, India, Australia, Indonesia, Russia, South Africa, Germany and Poland.