(Bloomberg) — China boosted coal and gas output to record levels in March, as the nation turned to its domestic producers for security of supply after international prices skyrocketed in the wake of the Russian invasion of Ukraine
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Coal production increased 15% on year to 396 million tons, while natural gas rose 6.3% to 19.7 billion cubic meters, according to data from the statistics bureau on Monday. Crude output rose 3.9% to 17.71 million tons, its best level since December 2015, although refining activity retreated as demand remained fragile due to a resurgent virus.
Among metals, steel output shrank as virus curbs, including in the production hub of Tangshan, stymied the usual rebound in activity after the Lunar New Year. Aluminum production rose, however, after smelters resumed idled capacity and started new units amid a surge in prices due to the war in Ukraine.
China has gone all-out to lift coal production in particular after an unprecedented power crunch wracked the economy in the fall. But the effort to wring more output from miners may have reached its limit, a top industry official said last week, warning that the extra supply may not prevent a return to electricity shortages in key industrial regions.
Although Beijing wants to add another 300 million tons of capacity, ostensibly to cut imports, it hasn’t given a timeline for the expansion. In any case, the government will soon be running up against its mid-decade deadline for cutting consumption in order to meet its climate goals.
The broader data showed that China’s economic growth accelerated in the first quarter, with the damage from lockdowns to contain the spread of Covid yet to be fully reflected.
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Source: https://finance.yahoo.com/news/china-raises-coal-gas-output-031103716.html