The heatwave in some parts of north China provides a potential boost to coal demand even when the heavy rainfall in the southern part of the country weighed on coal demand by an output jump in hydropower.
If the high temperatures in several provinces in north China included Inner Mongolia, Hebei, and Shandong are sustained, coal consumption could jump due to the increase in air-conditioning uses.
However, according to China's meteorological administration (CMA), colder weather could also come as soon as tomorrow and end the heatwave in north China thus drag down demand for coal.
