China’s thermal power output is shrinking

Thursday, 20 September 2012

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.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.