China rations electricity amid worst heatwave in 61 years

Last week, heavy rains wept over Inner Mongolia and Shaanxi Province. Ordos of Inner Mongolia issued notice to shut coal mines and suspend selling coal. As a result, mine-mouth coal price in interior regions rose to 860-950yuan/mt. With firm cost, the losses in methanol production based on coal aggravated in Northwest China and central and southern Shanxi. Some methanol plants in Central China earlier shut due to poor economics, have postponed the restarts once again.

However, as the rain does not last long, coal supply is expected to soon recover and the price could move lower after the peak consumption season.

China is hit by an enduring heatwave recently. With increasing consumption of electricity, some regions such as Sichuan, Chongqing, Jiangsu, Zhejiang and Anhui step up power rationing. The scope of impact on manufacturing enlarges, with power restrictions to plant operations