Page 159 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΣΕΠΤΕΜΒΡΙΟΣ 2022

economic growth pace combined with
prices, reduced hydropower generation
manufacturing shutdowns, electricity (the largest source of clean energy),
rationing, low steel output, declining and a generalised power crunch are
iron ore demand, easing port conges- all working in favour of this fossil fuel.
tion, a deepening property crisis, and During the first two weeks of August,
energy supply challenges are all putting Chinese power plants burnt a total of
together a not much appealing picture. 8.16 million tonnes of thermal coal,
Add to that the unknown Covid-19 fac- marking a considerable 15% increase
tor with the possibility of further lock- from the same period last year; on 3
downs come autumn, and you have a August, the daily thermal coal con-
much uncertain future to deal with. sumption hit a record high of 8.5 mil-
lion tonnes.
The summer was (super) dry However, this “rush for coal” incentiv-
The recent extreme heat conditions ises China to boost domestic produc-
across the Northern Hemisphere – tion of this dry fuel instead of import-
China just experienced its driest sum- ing more foreign coal (which would be
mer in the last 61 years, Europe is fac- a breath of fresh air for the shipping
ing its worst drought in 500 years, and market). During the first half of the
the American West the worst drought year, China mined 2.19 billion tonnes
in 1,200 years – underline the climate of thermal coal, an 11% rise from 1H21,
of aggravated energy crisis the world whereas its total coal imports dropped
is currently living in. by 17.5% y/y to 115 million tonnes.
Much has been written about the urgent The clear winner in coal flows, how-
need for environmental action to reduce ever, has been Russia. Even though
dependency on fossil fuels. Still, a prag- Europe sanctioned Russian coal in
matist would tell you that, for the time August, China is following a different
being, coal is virtually an indispensable trajectory by upping its coal imports
fuel in producing electrical power. from Russia (at a convenient discount
If anything, the recent dry summer sea- nonetheless): in July, the Asian nation
son and the Russia-Ukraine war have imported 7.42 million tonnes of Rus-
amplified that very reality: soaring gas sian coal, a 14% y/y rise and a 5-year
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