The most recently released data as of August 7th shows that the daily coal burn rate at China’s six major coastal power plants has come in at 916,000 tons.  This is up week-on-week by 2%, up year-on-year by 15%, and is a new record.  Coal burn has now set records during three of the last four weeks as China continues to experience warmer than usual temperatures and, in some places, new records.  In addition, new daily coronavirus cases and restrictions remain much lower than seen during May’s peak.  However, China remains well supplied with thermal coal.  Overall, this year continues to serve as a stark contrast to 2021.  As we discussed most recently in this week’s Weekly China Report, China’s central government last year was very much in denial and a thermal coal shortage emerged — but lessons were learned and a reversal in policy remains in place.  Demand for thermal coal is even stronger this year, but China is not experiencing a coal shortage.