The most recently released data as of July 24th shows that daily coal burn rate at China’s six major coastal power plants has come in at 904,000 tons.  This is up week-on-week by 1%, is up year-on-year by 12%, and marks a second consecutive week where a record has been set. 

As we have been discussing in our work, 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. 

As we stressed last week, China’s surge in coal burn is encouraging and if sustained could finally result in a rebound in Chinese coal import demand.  Up until recently, import prospects were not bullish, but such strong coal burn will continue to help deplete coal stockpiles.  Going forward, we will be continuing to monitor all relevant developments closely and will be continuing to publish updates.