Coal prices jump, hit by the perfect storm

Coal prices have risen to a record this week in Asia as flooding in Australia, power cuts in South Africa and snowstorms in China restricted output.

This contributed to electricity shortages in China, the world's fastest-growing major economy, and with the Lunar New Year holidays around the corner deep, anger is growing around the nation at these critical power shortages combined with massive queues at train stations - up to 600,000 people are now waiting outside Guangzhou train station. China is experiencing an acute power shortage with a nationwide electricity shortfall at 70 gigawatts, the equivalent of almost Britain's entire generating capacity. State media has described the crisis as China's worst-ever power shortage. So worried is the government that on Friday it put in place a two-month ban on coal exports. The coal shortages have forced the five biggest electricity producers to close 90 power stations - with a combined capacity of more than 20,000 megawatts - in northern and central China. Most parts of central and southern China are set to suffer weather that is more inclement in the next few days with some provinces facing snowstorms, and transport and energy supplies thrown out of kilter.
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