China power crunch slams factories as coal lobby warns woes could stay until winter

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WATCH: Beijing is scrambling to deliver more coal to utilities to restore supply as the northeast grapples with its worst power outages in years

Since last week, more than 100 companies from electronic component manufacturers to gold miners have notified stock markets of production suspensions. Some have said they resumed production in the last two days, however.

It urged companies to "spare no effort" to boost supply and focus on sales to smaller, high-energy consumers who have not signed long-term supply contracts.A truck transports coal at a coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu WangAlthough coal production hit a record in August, analysts with Chinese investment bank CICC said a recent spate of mine accidents had made regulators more cautious about approving expansions in output.

Zhai Junwang, manager of a company that rents standalone diesel-fired generators, said brisk business in recent days had led to a doubling in rates. The government has said its priority will be to guarantee household power and heating supplies over the winter, as state-run energy firm Sinopec pledged to boost imports of liquefied natural gas.

 

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