General (General discussion, talk about anything.)
From today’s Telegraph The time-honoured cure for high energy prices is high energy prices. Demand wilts.
It is happening in front of our eyes with breath-taking speed in China, the elephant in the global energy boat.
Chinese coal stocks are down to 18 days’ cover, deemed dangerously low by Beijing. It has long been the nightmare of Communist Party planners that the US might weaponise China’s dependency on fuel imports in a crisis.
State-run China Energy News said thermal coal inventories at power plants are critically low. “We are looking for coal everywhere, but no matter how high the price is, it is not easy to find,” said one utility.
Plants cannot pass on the surging cost - hitting $300 a tonne in places, up fourfold in a year - and are losing money on a systemic scale. One producer said his plant is losing a dime on every kilowatt of power. Banks are pulling credit lines.
Replied: 28th Sep 2021 at 12:59