China Burns More Coal and Gas as Wind and Nuclear Output Falls

China boosted its coal and gas power generation by 3.1% in April compared to the same month last year, as output from wind and nuclear sources declined. The increase highlights the country's continued reliance on fossil fuels to meet electricity demand, even as it expands renewable energy capacity.

The rise in thermal power generation comes despite a 1% drop in domestic coal output. Lower wind speeds and maintenance at some nuclear plants forced utilities to ramp up coal and gas-fired units. China still holds ample coal inventories, and power plants have been instructed to maintain stockpiles ahead of the peak summer season, when electricity demand typically surges. For traders tracking fuel markets, this sustained coal burn supports near-term demand for both thermal coal and natural gas, while potentially capping any significant decline in emissions-related regulatory pressure.

Looking ahead, the key variable is summer weather. If a heatwave drives air-conditioning demand higher, China could burn even more coal and gas, tightening global coal markets and supporting LNG prices. Conversely, a return of strong wind or nuclear output could ease fossil fuel consumption. Traders should watch China's weekly coal stock data and power generation figures for signs of how the summer demand season is shaping up.