Shanxi, China’s largest coal-producing province, signed medium and long-term deals to supply coal to 14 other regions in the fourth quarter, state-owned Xinhua news agency reported. The agreement came amid widespread power restrictions due to a coal shortage. Official data showed Shanxi produced 1.06 billion tons of coal in 2020, more than 25% of the national total.
Under the deal, state-owned miners operating in Shanxi will also ensure supplies to Guangdong, Fujian, Hebei, Liaoning, and Tianjin. Jinneng Holding Group will provide coal to Anhui, Guangxi, Jiangsu, Jilin, Shanghai, and Zhejiang. Shanxi Coking Coal Group will supply Henan. Luan Chemical Group will provide coal to Shandong, while Huayang New Material Technology will supply Hainan.
Some Chinese provinces are rationing power to industrial and residential users amid tight coal supply and soaring prices of the fuel. Thermal coal futures in China have climbed 50% in September to a record high of more than CNY1,300 ($202) power ton as of Wednesday noon before falling over 3% during night trading.
