China’s drought intensifies global coal shortage

Reuters | Sept. 6, 2022

LONDON, Sept 6 (Reuters) – China’s drought has sent coal prices surging as traders anticipate the lack of hydroelectric generation will force it to burn more coal to meet electricity demand this winter.

China’s rising coal consumption threatens to worsen a worldwide shortage as power producers in Europe and the United States also turn back to solid fuel in the face of soaring gas prices.

It marks a significant turn around from the first half of the year when heavy rainfall and plentiful hydro generation enabled China to reduce coal use and rebuild depleted inventories.

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