The most recently released data as of July 17th shows the daily coal burn rate at China’s six major coastal power plants has come in at 899,000 tons.  In addition to setting a record, this is also 9% stronger than was seen one week prior and is up year-on-year by 5%.  This most recent surge has come due to weather turning even warmer. 

As we have been discussing in our recent work, China continues to experience warmer than usual temperatures and, in some places, new records.  Several other regions also continue to see temperatures at sixty-year highs.  The surge in coal burn is encouraging and if sustained could finally result in a rebound in Chinese coal import demand.  Up until now coal import demand was not bullish, but such strong coal burn will help deplete coal stockpiles.  Going forward, we will be continuing to monitor all relevant developments very closely and will be continuing to publish updates.