China economic focus June 2022: will power shortage come again?
China is recovering from the Omicron lockdowns that occurred between March and May. Avoiding power cuts in this round of recovery has become the priority of the Chinese government since the widespread power rationing of September 2021. With thermal coal trading above RMB1200/t in the spot market, many suspect that power shortages may return. However, a slower economic recovery and sufficient power supply suggest that another round of power rationing is unlikely except for some extreme circumstances.