China’s largest coal-producing region has been hit by floods at the worst possible time, as the country’s energy supply is already tight.
Tan is crying.
Massive flooding in China’s large coal-producing province of Shanxi has forced some mines to close.
The shutdown comes amid an energy crisis in China that could further strain the global supply chain.
China’s coal future has set a record on the supply crisis.
Massive floods have swept through China’s Shanxi province in the past week, temporarily shutting down coal mines at a major production center.
A province in northern China, home to about 35 million people, has been hit by floods this year due to unusually heavy rains. The latest floods have destroyed about 17,000 homes and rehabilitated 120,000, according to state-run Xinhua News Agency. At least 15 people have been killed.
In addition to human lives, the floods have closed 60 coal mines – about 9 percent of the province’s total, according to local media, although some are slowly returning online.
A shutdown in the global supply chain before Christmas could put further pressure. As it stands, China is already in an energy crisis that has forced major suppliers of major companies such as Apple and Tesla to suspend production.
The floods could not come at a worse time for China, as the country is already facing a power crisis. The country has been facing power shortages since the middle of the year, leading to factory closures and residential blackouts since late September. According to Reuters, authorities were banking on Shaanxi to increase coal production this year.
The province accounts for more than a quarter of China’s coal production.
Lack of supply could also affect China’s growth, research house Fitch Solutions said in a report in late September, which could potentially revise the country’s GDP growth forecast this year so that electricity Lack of Its current forecast for China’s GDP growth this year is 8.3 percent.
Meanwhile, coal prices are rising in China.
China’s thermal coal futures on the Zhengzhou Commodity Exchange closed higher at 12% on Monday, pushing gains to a new record on Tuesday.