With power shortages aggravating due to shortage of coal and low hydro output, the provinces Hunan, Jiangxi and Chongqing have imposed power rationing with a daily restriction of 20m KWh.

According to the local grid operator. stocks in the region were 8.56 million tonne on April 25, enough for nine days, further down from 8.8mt on April 10 and 9.14 million tonne at end-March. Local sources expect this to be eased in May, when precipitation climbs. Meanwhile, in coal producing province Shaanxi, stocks at 70% power plants stand below the seven-day warning level.

Local producers have refused to settle the annual contracts with users and are selling at much higher spot prices, which is the main reason, said officials. The provincial government demanded earlier that state-owned mines must sign deals with prices unchanged from 2010, at app CNY 415 per tonne (USD 63.7 per tonne) FOR, basis 5,000kc NAR, while private miners are allowed to raise prices by 10%.

(Sourced from China Coal Time)