Amid the protracted energy crisis in China, small companies have begun to switch to diesel power generators or even stop working. In this regard, the Coal Industry Association expresses concerns about stocks ahead of winter. Analysts note that China is facing the most severe energy crisis in recent years – power outages have affected a significant part of the country. Problems with electricity supplies caused by a jump in coal prices have been going on for the second week. As you know, coal is the main source of electricity in China, and today its cost is kept near a record level amid a shortage of supply and strong demand from industrialists. Owners of many companies report that they are suffering unprecedented losses, and the official Purchasing managers Index (PMI) for China's manufacturing sector has fallen below 50 points for the first time since February 2020. The Chinese Coal Industry Association warns of a low level of coal reserves at power plants and a possible shortage in the winter months, and asks companies to make every effort to increase supplies.
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