As we have continued to discuss in our updates, China’s coal burn has been setting records during the last several months.  Data released today shows that China’s coal-derived electricity generation not surprisingly set a record in July, but this has not received much widespread attention. 

China’s total electricity production also set a record, but this also has not received much widespread attention.  Overall, China’s economy continues to experience weakness, but the fact that electricity production has set an all-time high cannot be ignored.  

Coal-derived electricity generation totaled 556 billion kilowatt hours in July.  This is up month-on-month by 100.7 billion kilowatt hours (22%) and is up year-on-year by 32 billion kilowatt hours (6%).  While 6% year-on-year growth marks a welcome change from the previous four months which all saw China’s coal-derived electricity generation contract on a year-on-year basis, the 6% growth is still well below the growth seen in domestic coal production.  China’s coal production totaled 372.7 million tons in July.  This is down month-on-month by 6.6 million tons (-2%) but is up year-on-year by 58.5 million tons (19%). Growth in domestic coal production again exceeding growth in coal-derived electricity generation is not supportive for coal import prospects.