China Says It Can Get Through Summer Without Major Blackouts

(Bloomberg) -- China has sufficient electricity capacity to meet demand over the summer months even as temperatures soar, according to the country’s top planning agency.

The amount of coal stockpiled at power plants reached a record 199 million tons at the end of June, Jin Xiandong, a spokesman for the National Development and Reform Commission, said at a press briefing in Beijing on Tuesday.

Asia’s largest economy has ramped up domestic coal production and imports this year in a bid to minimize a repeat of blackouts that hit its economy in 2022. However, its efforts are being tested by searing conditions that saw the nation record its highest ever temperature of 52.2C (126F) in the Xinjiang region on Monday.    

Recent rains in the southwestern Sichuan province have also helped raise reservoir levels, easing a power crisis there, according to a report in Xinhua. The hydropower-reliant province, which also exports electricity to other parts of China, has been rationing power amid the hot and dry conditions. 

The Week’s Diary

Tuesday, July 18:

• China’s 2nd batch of energy, agriculture and metals trade data for June

Wednesday, July 19:

• China June output data for base metals and oil products
• China Photovoltaic Industry Association seminar in Xuancheng, Anhui, July 19-21

Thursday, July 20:

• China’s 1- and 5-year loan prime rates
• China’s 3rd batch of June trade data, including country breakdowns for energy and commodities

Friday, July 21

• China weekly iron ore port stockpiles
• Shanghai exchange weekly commodities inventories, ~3:30pm local time

On the Wire

China’s property industry contracted again in the second quarter after a short-lived expansion in the previous three months, adding to the economy’s challenges.

China’s Premier Li Qiang pledged the nation can strengthen climate action with Washington as he met John Kerry for the most high-profile talks scheduled during the US envoy’s visit to Beijing this week.

Iron ore rose on hopes Beijing will step up stimulus efforts after second-quarter growth data missed expectations.

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