06 FEBRUARY 2026Mysteel
Feature: China seen moving away from coal supply guarantees amid shifted energy mix
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6 min read
Supply guarantee policy reshapes coal market
In May 2021, the Chinese government rolled out the coal supply guarantee policy to address an abrupt coal shortage that had quickly pushed up the fuel prices and caused power cuts in a few areas of the country. The subsequent droughts which dampened hydropower generation and the Russia-Ukraine conflict from 2022 further underscored the national energy security, elevating coal's role in this key task.
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