China power firms suspend publication of coal data, frustrating analysis of industrial production

Five of China’s largest power companies have halted the release of data on daily coal consumption, without providing a reason

The decision has frustrated economists and analysts who have been using the information to monitor factory production and China’s economic recovery

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Analysts use coal consumption data to gauge demand and in turn estimate production levels at factories in China. Photo: AFP

Published: 6:52pm, 8 Jul 2020Updated: 11:13pm, 8 Jul 2020

The publication of daily coal consumption data from China’s main power companies, which is widely used by economists to gauge industrial output and broad economic activity, has been suspended after the electricity providers stopped reporting their numbers.

The decision to stop releasing data for five major power generation groups, which between them supply information from 56 coal-fired power plants, comes as analysts scramble for clues about the speed of China’s economic recovery following the coronavirus shock earlier this year.

Compared to official economic indicators that are often published on a monthly basis – with headline gross domestic product growth published quarterly – daily figures on how much coal is being burned at thermal power plants offers a more up-to-date guide to Chinese economic activity.

Qinhuangdao Port, a major coal trading hub in northern China, stopped giving daily updates on coal consumption and inventory at the beginning of this month after Huaneng, Huadian, Datang, Shanghai Electric Power and Guangdong Energy Group stopped sharing the data.

This has been an important high frequency indicator for analysts to track the progress of activity in China, especially earlier this year when the outbreak was more severe

Michelle Lam

The decision has frustrated economists and analysts who have been using the data to gauge demand and in turn estimate production levels at factories, which consume most electricity.