Coal coupons began to be distributed in China

Bloomberg: Local Authorities Distribute Coal Coupons to 47,000 Chinese Families could heat their homes, Bloomberg writes.

In Shuzhou (an urban district in Shanxi province), the authorities distributed coupons to 47 thousand families. Each coupon is designed for two tonnes of subsidized coal to last for the winter and early spring.

Fuel shortages have led to higher prices and widespread power cuts. This caused record production (over 12 million tonnes per day), which has brought the market back into equilibrium for now. However, residents of the county, just in case, began to stock up on dried corn cobs that can be used for firewood.

Issuance of coupons sparked a heated discussion, reminiscent of the Chinese era of Mao, when families were forced to buy basic necessities under quotas set by the government .

Meteorologists warn that in the coming months there will be cold weather and prolonged drought. Chinese thermal coal futures on the Zhengzhou Mercantile Exchange are up 11 percent this week.

A shortage of coal has been one of the causes of the energy crisis in China. At the end of September, power outages in residential buildings and at work began in the country due to a lack of electricity.