China’s October coal imports nearly doubled its year-on-year for October, according to a report from the General Administration of Customs published on Nov. 7. The import increase comes as concerns escalate about power shortages, due to the approaching winter.
China bought 26.9 million tons of coal in October, which amounts to a 96.2% increase in comparison with the same term during the previous year.
The numbers for October were less than September, when China’s coal imports peaked at 32.9 million tons. The large purchases come as Chinese people have been suffering severe power outages, which intensified in September.
Coal scarcity was aggravated in the beginning of October as key coal mining regions were hit by torrential rain, adding further strain on the country’s tight coal supply.
Analysts have estimated that a majority of coal-fired power plants in China run at a loss, while the National Energy Administration since July has been warning that a number of power firms in northwestern and northeastern China were facing operational difficulties because of coal shortages.
China took its steps in October with power reform by allowing coal-fired power plants to pass on higher costs to some customers, with an aim to encourage power plants to generate more electricity and ease their profitability pressures.
Shortage and surging costs caused thermal coal prices to rise, reaching 1,640 yuan ($254.44) per tonne on Oct. 13, tripling the price at the start of 2021.
