This is not breaking news, it was carried by Reuters over the weekend but is getting more attention.
- India stands on the brink of widespread power shortages
- Coal-fired plants account for about 70% of India's power source mix
- Though New Delhi recommends having at least two weeks' worth of coal stocks on hand, the average shrank to 13 days in early August. As the country's economic activity picked up with the declining rate of coronavirus infections, industrial demand for electricity mushroomed.
There is a coal crunch in China as well. Shortages will weigh in industrial production. Meanwhile spot coal prices are rising. Australia reported its third consecutive record trade surplus for the month today (August data). Energy exports more than made up for iron ore hits by falling prices.
China's imports of Australian coal have dropped to zero.
