China power crunch slams factories as coal lobby warns 'not optimistic' on supply
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A person walks near a China Energy coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A truck transports coal at a coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
China Energy coal-fired power plant is pictured in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A general view of Shenyang city is pictured at night, in Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A chimney of a China Energy coal-fired power plant is pictured in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A person walks near a China Energy coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A truck transports coal at a coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
China Energy coal-fired power plant is pictured in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A general view of Shenyang city is pictured at night, in Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A chimney of a China Energy coal-fired power plant is pictured in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
A person walks near a China Energy coal-fired power plant in Shenyang, Liaoning province, China September 29, 2021. REUTERS/Tingshu Wang
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SHENYANG: Small firms caught in China's prolonged power and coal crunch are turning to diesel generators, or simply shutting shop, as coal officials voiced fears for stocks ahead of winter and manufacturing shrinks in the world's number 2 economy.
Beijing is scrambling to send enough coal to electricity utilities to restore full supply, with the worst power outages in years affecting large swathes of the country, especially three northeastern provinces including Liaoning that are home to nearly 100 million people.
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Gao Lai, who runs an industrial laundry service in Shenyang, the capital of Liaoning, said he was losing money after the power crunch forced him to hire a diesel generator.
"We can afford it for just four days, but if it's for longer, then the costs are too much, so we can't survive," he told Reuters.
"We are willing to make it work because the country needs it, but if (power curbs continue) in the long run, we have to think of a way out."
The shortages were triggered by a lengthening surge in the price of coal, which fuels about two-thirds of China's power generation, and is now hovering near record levels amid tight supplies and strong manufacturing demand.
Official data separately showed the measure of manufacturing contracted in September for the first time since February 2020.
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Since last week, more than 100 companies in businesses ranging from the manufacture of electronic components to gold mining have notified stock markets of production suspensions over the cuts.
Some have said they resumed production in the last two days, however.
The strain comes as the China Coal Industry Association warned it was "not optimistic" about supplies ahead of winter, the peak season for demand, and added that power plant inventories were now "obviously low".
It urged companies to "spare no effort" to boost supply and focus on sales to smaller, high-energy consumers of coal who have not signed long-term supply contracts.