Oil / Commodities - Heavy rainfall sweeping across southern China is swelling reservoirs and promising ample hydropower generation that will further suppress coal demand already weakened by pandemic restrictions. China has the world’s largest fleet of power-producing dams, with about 394 gigawatts of capacity. Hydropower generation as already up 13% over the previous year through the end of March. Continued strong output from them could help ease the burden on coal. The government has taken a slew of measures to increase supply of the fuel to ensure there is no repeat of last year’s shortages that caused widespread power curtailments. Concerns about coal supply were already abating after a slump in demand caused by China locking down large swathes of its population to prevent the spread of COVID. Consumption across key terminals in 25 provinces during the week of May 4th was down almost 6% from the previous year, while inventories had risen about 35%.
Newsletter - May 11, 2022
Newsletter - May 11, 2022
Newsletter - May 11, 2022
Oil / Commodities - Heavy rainfall sweeping across southern China is swelling reservoirs and promising ample hydropower generation that will further suppress coal demand already weakened by pandemic restrictions. China has the world’s largest fleet of power-producing dams, with about 394 gigawatts of capacity. Hydropower generation as already up 13% over the previous year through the end of March. Continued strong output from them could help ease the burden on coal. The government has taken a slew of measures to increase supply of the fuel to ensure there is no repeat of last year’s shortages that caused widespread power curtailments. Concerns about coal supply were already abating after a slump in demand caused by China locking down large swathes of its population to prevent the spread of COVID. Consumption across key terminals in 25 provinces during the week of May 4th was down almost 6% from the previous year, while inventories had risen about 35%.