Power use in China’s Zhejiang hits historical high

Source : https://www.argusmedia.com/en/news/2125657-power-use-in-chinas-zhejiang-hits-historical-high


Power load in east China's Zhejiang province rose to a historical high, boosted by increasing temperatures following heavy rains. This has lifted coal consumption for power generation.

Load on the power grid in Zhejiang reached 85.34GW yesterday, according to the provincial power grid operator. This was up by 170MW from the highest load of 85.17GW reached last year. Power loads for seven cities in the province also hit record highs yesterday.

Power demand in central China's Hunan province also rose on higher temperatures after rains stopped earlier this week. Hunan Power Grid, the provincial grid operator, has forecast that the power load will be as high as 32GW this summer, up by 6.1pc from the heaviest load reached last year.

Coal consumption increased on stronger power use for air-conditioning. Coal burn at major Zhejiang-based utility Zhejiang Power was at 128,000 t/d yesterday, the highest since 13 July, according to coal industry association the CCTD. But the utility is well stocked, with inventories at 4.36mn t yesterday, up from 4.2mn t a week earlier. This may curb restocking demand, unless strong power use persists and drags stocks down quickly.

Offtake by domestic utilities from the main coal-handling port of Qinhuangdao rose to 608,000 t/d yesterday, the highest since 10 July. This was probably a result of higher temperatures and easing floods along the Yangtze river, allowing more coal vessels to sail to regions along the river. Stocks at Qinhuangdao dipped to 5.22mn t yesterday from 5.32mn t the day before.

But the resumption of rains in regions along the Yangtze river could curb national power demand again. The China meteorological administration has forecast repeated storms affecting Sichuan and Jiangsu provinces from 26 July.

China's domestic coal prices lost more ground this week. Bids for NAR 5,500 kcal/kg coal were at around 568-572 yuan/t ($81.20-81.80/t) fob ports in north China today. Offers for the coal were at around Yn575/t fob. This was down from the latest Argus assessment of Yn586.42/t fob Qinhuangdao for NAR 5,500 kcal/kg coal on 17 July.

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