Chinese companies set for profit windfall from commodity squeeze

Coal miners highlight expected tripling in earnings

20211015 China coal2

Rising coal prices were a key factor in the record monthly jump in China's producer price index.  © AP

KENJI KAWASE, Nikkei Asia chief business news correspondent

TOKYO -- Chinese goods producers may be feeling squeezed by spiking input costs, but a wave of profit updates from the country's resource producers highlight the windfall coming their way.

Beijing on Thursday reported a 10.7% year-on-year rise in the country's producer price index, the biggest jump since China began compiling such data 25 years ago. A key driver was higher prices for coal, the fuel used in most of the country's power plants.

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