For those wondering why thermal coal prices have been under pressure for the past quarter, look no further than China’s electricity ouput.
China’s electricity output increased by 2.7% yoy in August. We knew that figure from earlier release of industrial production output.
Breaking it down, thermal power output continued to contract. Thermal power output decreased by 6.3% yoy in August, worse than –4.5% yoy in July.
The continued contraction in thermal power output was offset by hydroelectric power output, which increased by 48% in August.