Chinese energy production and consumption on the rise
Chinese power generation in July totaled 605bln kWh according to official statistics, up 8.2% compared to the same month last year and comfortably a new all-time high for any monthly period. Power generation in the first 7 months is up 6.8% from the same period last year.
Chinese thermal production of 433bln kWh is up 10.5% compared to July last year and a new all-time high. YTD the thermal generation is up an impressive 7.8%.
Chinese hydro production of 125bln kWh in July was up a marginal 0.2% YoY. YTD the hydro production is down 2.8 % compared to the same period last year.
Chinese electricity consumption in July was separately being reported by the National Energy Administration (NEA) to be up 9.9% YoY while YTD consumption is up 7%. Energy consumption has been growing across all sectors (manufacturing industry, service industry, residential and mining/extraction). In absolute terms the biggest contributor in the first half of the year has clearly been the Manufacturing and Construction sector. The breakdown per sector in July has not yet been disclosed.
Klaveness Research says:
We expect total power generation and thermal generation to continue to post YoY growth in the coming months as electricity consumption is increasing across the board. This bodes well for the coal demand. As the absolute growth in electricity consumption is dominated by Manufacturing/construction it also implies that the demand for other raw materials will remain firm going forward.