It is estimated that the annual growth rate of electricity consumption will reach 6.5% as demand weakened due to a reduction in industrial production due to environmental restrictions.
China’s electricity consumption totalled 513TWh in October, down 0.2% m-o-m but still was 5% higher y-o-y. This takes the power consumption to 5,202TWh over the first 10 months of the year, up 6.7% y-o-y.
Power demand weakened as Chinese industrial production reduced due to environmental restrictions. It is estimated that the annual growth rate of electricity usage in the fourth quarter will contract from the third quarter. The annual growth rate of electricity consumption will be 6.5% y-o-y, higher than the average growth rate of 2016.
The fall of electricity consumption in October is closely related to the short-term economic conditions, particularly the fluctuations of industrial operation. By sectors, compared to September, the electricity consumption in the primary and tertiary industries has increased. The growth rate of electricity consumption in the secondary industry fell 2.1%. The household electricity consumption in urban and rural areas fell 3 %. In particular, the growth rate of electricity consumption in the secondary industry is only 3%.
The China Electricity Council estimates that China’s total electricity consumption will maintain a steady growth in the fourth quarter, and grow about 6.5% for the whole year, higher than the average growth rate of 2016. Temperature factor drives the full year’ growth rate up 1%.
Source: Xinhua, CEC, Global Commodity News