China amasses 30-day coal supply ahead of El Nino power crunch
China has built up roughly a 30-day coal supply to guard against a power crunch that El Nino could trigger. Surging electricity demand during extreme heat is putting the country's energy-security planning in focus. The stockpiling could also affect global coal markets.
China has amassed roughly a 30-day coal supply to guard against a power crunch that El Nino could bring. According to the report, air-conditioning and industrial demand driven by extreme heat risks adding pressure to the electricity grid.
Despite rapidly expanding its renewable capacity, coal still plays a central role in China's power generation. Officials prefer to keep stockpiles high to prevent possible outages during hot spells. The approach reflects a strategy that prioritises energy security.
Because China is a major coal buyer, its stockpiling decisions can also affect global prices and trade flows. How severe El Nino proves this year will be the main factor shaping the balance between demand and reserves. This is not investment advice.
More from Asia
Japan to bolster sea lane defence with Southeast Asia info-sharing plan
Japan will set up a broad maritime information-sharing framework with Southeast Asian countries, led by the Philippines, Vietnam and Indonesia. With the Hormuz crisis and South China Sea tensions in the background, Tokyo is moving to protect critical trade lanes.
Quad ministers unveil energy, critical minerals and Fiji port plans
Foreign ministers of the Quad - the US, Japan, India and Australia - have unveiled new plans on energy, critical minerals and a port project in Fiji. The steps aim to give substance to the group's economic cooperation in the Indo-Pacific. The timing of a leaders' summit remains uncertain.
Inflation storm builds in India as rupee sinks deeper
India's wholesale price inflation is expected to face additional upward pressure as oil and metal prices remain elevated amid geopolitical tensions. A weakening rupee is further worsening the inflation outlook, a new report warned.