Coal shortages force plant shutdowns

China has shut down 2.5% of its coal-fired power plants due to insufficient coal supplies, Bloomberg reported. The closure of 58 power plants, with a total generating capacity of 14.02 gigawatts came after data from State Grid Corporation of China, China's largest grid company, showed coal inventories were sufficient for only 11 days of consumption. Supplies, hit by the closure of small and unsafe mines, were further reduced by price caps imposed on thermal coal. Those price caps were introduced to reduce pressures on power producers, but have encouraged traders to sell Chinese coal overseas at higher prices. Partly as a result of this, China's coal exports jumped 84% in June.