[EpochTimesOctober092021](Epoch Times reporter Li Jing comprehensive report) Since the end of August, power supply shortages have occurred in many places in China. Recently, an emergency notice about the release of production capacity in Inner Mongolia coal mines has been circulating online. On October 8, coal stocks plummeted and the sector fell 5%. In addition, power stocks also collapsed, falling more than 4%.
On the evening of October 7, an “Emergency Notice from the Energy Administration of Inner Mongolia Autonomous Region on Accelerating the Release of Part of Coal Mine Production Capacity” was circulated on the Internet, and the document was signed on October 7.
The document requires Xilin Gol League, Wuhai City, Ordos City Energy Bureau, and Hulunbuir City Bureau of Industry and Information Technology to immediately notify 72 coal mines that are included in the national nuclear increase potential list to temporarily organize production according to the planned nuclear increase.
According to news from China Securities.com, a person from the Energy Bureau of the Inner Mongolia Autonomous Region said that the above notice was indeed issued, but it was only issued to coal sales companies, and the notice has not been publicly released.
After the notice circulated on the Internet, coal stocks plummeted on the morning of October 8, and the sector plummeted 5%.
Among them, Pingmei shares fell 9.87%, Jizhong Energy fell 9.98%, Lanhua Kechuang fell 9.89%, Shanxi Coking Coal fell 8.85%, and Shanxi Coal International fell 4.84%.
In addition, power stocks also collapsed, falling more than 4%. Huaneng Hydropower, which has a market value of 100 billion yuan, fell 9.95%, Huaneng Power International fell 9.73%, Shanghai Power fell 10.02%, Funeng shares fell 9.98%, solar energy fell 9.47%, energy-saving wind power fell 9.25%, and Zhejiang Xinneng fell 8.71%.
The decline in the coal sector may be related to the recent news of increasing production and guaranteeing supply.
Major coal-producing provinces suffer from floods and reduce production
While releasing part of coal mine production capacity in Inner Mongolia, 27 coal mines in Shanxi, a large coal-producing province, were halted due to floods, which made the severely short coal supply worse.
According to the “Daily Economic News” report, as of 8 a.m. on October 4, many production projects in Shanxi Province were shut down, including 27 coal mines and 99 non-coal mines.
Shanxi is the province with the largest coal production in China, accounting for more than a quarter of the country’s coal production.
Xu Keyuan, head of the Guangzhou Futures Metals Group, said that the emergency shutdown of 27 coal mines will have a significant impact on the subsequent supply of coal mines.
Since September of this year, more than 20 provinces including Liaoning, Jilin, Jiangsu, Zhejiang, and Guangdong have “restricted power,” some areas have unannounced power outages, and some provinces have raised electricity prices, causing public outrage.
At a time when the power supply crisis in mainland China is getting worse, the CCP Customs has begun to release Australian coal. Part of Australian coal that has been stranded along the coast of China for nearly a year has been allowed to enter customs.
The CCP began to impose an unofficial ban on Australian coal in October last year. Afterwards, Mainland China experienced the coldest winter since 2013. When the market demand for coal was soaring, Australian coal, which was of high quality and cheap, was banned from entering the country. At that time, domestic coal prices in China soared to more than twice that of Australia, and market analysts pointed out that the Chinese coal market was in chaos.
Editor in charge: Ye Ziming#
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