A governor of a northeastern province has called for more imports of coal to help with electricity shortages.
- "multiple channels" are needed to guarantee coal supplies
- urged increased imports from Russia, Indonesia and Mongolia
Jilin province has been forced into rationing power. One of many provinces doing so.
Some remarks from analysts:
Morgan Stanley:
- Power cuts have come as China's carbon regulatory reset has collided with its industrial boom amid the pandemic
- Production cuts, if prolonged, could knock 1 ppt (percentage point) off GDP growth in Q4, led by materials production
Nomura:
- power-supply shock in the world's second-biggest economy and biggest manufacturer will ripple through and impact global markets
- supply shocks have prompted us to further cut our year-on-year Q3 and Q4 GDP growth forecasts
