A heatwave across China has boosted coal-fired power generation and drawn down utility coal inventories, the China Electricity Council (CEC) said in its latest weekly report.

Daily power generation at surveyed coal-fired plants rose 13.6% week on week in the July 10-16 period, but fell 1.0% year on year, according to the CEC data.

Sustained high temperatures drove up residential cooling demand, while heavy rainfall in the south reduced hydropower output as reservoirs discharged floodwater, weakening the substitution effect on coal-fired power. The week-on-week increase in coal-fired generation was also amplified by a low base from the prior week, though total output remained below the same period last year.

By region, daily coal consumption at surveyed plants rose 11.5% week on week and 0.1% year on year. Central China posted the largest gain of 51.3%, followed by north China at 13.4%, northwest China at 10.7%, southern China at 7.7%, and east China at 4.4%. Only northeast China saw a decline of 7.1%.

Coal receipts at power plants edged down, with shipments to east and northeast China disrupted by Typhoon Bavi, which hampered shipping and unloading.

Utility coal inventories fell sharply to 112.12 million tonnes as of July 16, down 4.73 million tonnes from July 9, with stockpile cover days at 23.5. The stockpiles were 9.43 million tonnes below the year-ago level, with cover days one day lower. 

For plants supplied by sea, daily generation rose 7.3% week on week and 2.0% year on year, while daily coal consumption stood at 1.6 million tonnes, up 5.9% week on week and 5.6% year on year. Their coal stocks fell to 29.44 million tonnes, down 2.08 million tonnes from July 9, with cover days at 19.6.

As of July 16, cumulative power generation at surveyed coal-fired plants in July fell 6.1% year on year, while the year-to-date total rose 0.5%. Coal consumption at these plants in July was down 3.5% year on year, but up 0.8% year to date. 

At the production areas, supply growth remained limited and prices firmed after a decline. Ongoing safety inspections and rainfall in key producing regions curbed output and transport efficiency, keeping overall supply low. As the plum rain season ended in the south and regional heatwaves in the north lifted power loads, coal consumption at utilities rebounded. Demand from non-power sectors such as metallurgy and chemicals edged up. Higher port prices spurred trader buying interest, boosting pithead trucking demand. Major coal miners raised their procurement prices, and expectations of further heat strengthened miners' holding sentiment. Mine-mouth prices rose 20-35 yuan/t, though buyer acceptance was limited after the increases.

In the portside market, prices edged up but actual trading remained subdued. Heavy rain disrupted rail deliveries, while persistent negative margins on shipping costs reduced port arrivals. Des