SteelOrbis Shanghai
In October China's electric power generation decreased by 0.5 percent year on year, with thermal power generation falling by approximately two percent, marking the first year-on-year decrease since February 2005.
China's electric power generation has registered a decline in the year-on-year growth rate for six consecutive months since March 2008. According to China's National Bureau of Statistics, in September China's electric power generation went up by 3.4 percent year on year, with thermal power posting a growth rate of 2.7 percent and hydropower increasing by 5.7 percent. However, electric power generation in March had posted a considerably high year-on-year growth rate of 16.6 percent.
Many industries in China have been affected severely by the global financial crisis. Some small and medium-sized foreign trade enterprises have struggled to survive and some have even gone bankrupt, exerting a negative impact on industries such as the steel, chemical and non-ferrous industries, resulting in production rollbacks and in a significant decline in demand for electricity.
The trend of electric power generation in China is closely linked to the GDP grow rate. Besides, the monthly growth rate of electric power generation in October is used as a reference point for the future trend of China's macro-economy.