China’s Slumping Economy to Cut Coal Use Even as Output Swells

China’s demand for thermal coal is likely to keep falling through the rest of the first half, as virus restrictions continue to mire the economy in a deep slump.

Alongside measures to boost output and build stockpiles, that’ll give China a better chance of satisfying peak power demand over the summer, when air-conditioning needs are at their height, and retaining enough of a buffer to keep industry supplied into the autumn. A shortage of coal in the fall of 2021 contributed to unprecedented blackouts during a peak production period for many industries, and some southern provinces have warned this year over the potential for more outages heading into the hotter months.