Sumary of UPDATE 1-China’s factory gate inflation hits record high in September:
- By Reuters Staff3 Min ReadBEIJING (Reuters) -China’s annual factory gate prices grew at their fastest pace on record in September, driven by energy curbs and soaring commodity prices, piling pressure on businesses already grappling with supply bottlenecks.
- A widening power shortage in China, caused by the country’s transition to clean energy, booming industrial demand and high commodity prices, have halted production at numerous factories including many supplying big global brands such as Apple.
- Thermal coal prices on the Zhengzhou Commodity Exchange gained 60% last month, and were last up 8% at 1,408.20 yuan ($218.77) per tonne amid a coal shortage.
- Beijing has taken a raft of measures to curb record-high coal prices and ease the country’s power crunch, including urging coal miners to boost output and manage electricity demand at industrial plants.
- Despite this, coal prices have remained elevated, partly due to the shutdown of dozens of coal mines as floods hit China’s top coal producing province of Shanxi.