SINGAPORE, June 8 Reuters An ongoing heatwave in China is boosting power demand for cooling, but tepid industrial demand and record high coal inventories are keeping prices at twoyear lows and limiting spot liquefied natural gas LNG imports.

Analysts do not see coal prices rising or spot LNG imports picking up anytime soon as a sluggish domestic recovery from COVID19 curbs and shrinking exports dampen power demand from manufacturers, which account for about twothirds of electricity use in the world39;s No. 2 economy.

China has gotten used to using less LNG, said Alex Siow, lead Asia gas and LNG analyst at pricing agency ICIS.

The outlook will hurt coal and LNG exporters, as China is the world39;s biggest coal importer and vies with Japan as the top LNG buyer. The industrial and power sectors account for more than half of the country39;s gas demand.

Weak industrial demand is the root cause, with key gas consumers like ceramics and glass makers operating at low rates as they face poor external demand, said a senior Chinese trader, who declined to be named as he is not authorised to speak to media.

He added that some of these plants have cut production by a third versus last year.

The weak outlook for coal and gas demand comes despite meteorologists warning of unseasonally hot weather for June, with temperatures exceeding 37 Celsius 98.6 Fahrenheit from Beijing to Xinjiang.

Abundant piped gas supply, with some industrial users having agreed in late 2022 to…