China Takes Advantage of Cheap Gas and Coal to Rebuild Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2024
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Source: Bloomberg
- China Stockpiling Power Fuels: China is increasing imports of coal and natural gas to replenish stockpiles ahead of a hot summer, taking advantage of lower global prices.
- Challenges in Coal Industry: Coal miners are facing safety scrutiny, depleting quality, and output growth restrictions as Beijing aims to peak coal consumption by 2025.
- Power Supply Concerns: Policymakers are prioritizing power supply stability after past shortages; demand is expected to rise due to an upcoming hot summer.
- Transition to Clean Energy: Despite increasing wind and solar energy, China's power demand continues to outpace supply, necessitating fossil fuel use, but there are signs of a shift towards clean energy.
- Trade Relations and Economic Impact: The US plans to increase tariffs on Chinese goods, which may have a modest immediate impact on China's GDP and trade with the US.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
