Rain Arrives at Critical Moment for China's Coal and Dam Sectors

Good that rivers, reservoirs are filling up, but this may be bad news for coal mining sector

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BEIJING — The heavy downpours rolling through southwestern and central China are filling up the rivers and reservoirs that feed the country's mighty dams, posing another threat to the coal market that competes with hydropower in electricity generation.

The storms are expected to last till at least early next week, the latest downpour of a rainy season that peaks between June and August. The major hydropower regions of Yunnan and parts of Sichuan and Guizhou are set for as much as 250mm of precipitation during the period, some 20 percent to 70 percent more than average, according to the China Meteorological Administration.

That is good news for dam operators as large tracts of these provinces, except Yunnan, have largely seen below-average rainfall so far in June, the weather agency said. But it is less welcome for the coal industry, which is grappling with chronically weak prices.