Record Heat Drives Boost in China's Coal Output and Thermal Power Generation

According to data released by the National Bureau of Statistics of China, China's coal production increased by 2.8% in August compared to the previous year, driven by higher thermal power generation and strong demand from the chemical industry.  

The world's largest coal producer extracted 396.55 million metric tons of coal last month, a rise from July's 390.37 million tons.  

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The surge in production came as July, the hottest month on record for China, extended into August, resulting in higher electricity consumption due to widespread use of air conditioning in homes and businesses, as per Reuters.  

In addition to reducing hydropower output, China's thermal power generation witnessed a spike last month.   

Thermal power, primarily sourced from coal in China, increased by 3.7% year-on-year, reaching 614.9 billion kilowatt-hours (kWh).  

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While hydropower output grew by 10.7%, this declined from the 36.2% growth recorded in July. Analysts also noted strong demand from the coal-to-chemicals sector, contributing to the overall coal consumption, Reuters reports.  

Due to safety inspections earlier in the year, coal production from January to August decreased by 0.3% compared to the previous year, totalling 3.05 billion tons, according to data from the national statistics bureau.