China is facing an acute coal shortage leading to spiralling prices of energy fuels across the globe as the world's second biggest economy grapples with a power shortage. Here is all you need to know about China's energy crisis and it's global impact-:
- Coal-based producers account for more than 70% of the China's electricity generation
- China's push to reduce greenhouse gas emissions and go “carbon neutral” by 2060 has capped the growth of coal mining.
- Demand pick up begins as covid recedes, imports have risen more than 20% since the start of June
- Inventories at six major Chinese power groups are down 31% and the lowest since 2017
- European coal prices have risen to a 13-year high, and Australian Newcastle coal has surged by 250% from last September
- Higher coal prices leading to rising cost of metals across the board as it is an input material for all factories
- Nickel prices are at 14 year high, Aluminium as well is touching record high levels.