China's power output rose 3.8 percent year-on-year in the month of June. According to data from the State Grid Distribution Center, this is the first power rise in 2009, since China's power consumption in the first five months fell around 4 percent from the year before. Analysts attributed the growth mainly to increased power use driven by unusually high early summer temperatures. The increased consumption also appears to be driven by sustained economic recovery. Prior to this, the China Electricity Council had forecast demand to rebound in the second half with consumption rising 5 percent for the full year.

China's State Electricity Regulatory Commission has released details of a pilot program featuring an expansion in direct power supply. This is intended to break the country's current electricity transmission duopoly. 15 electrolytic aluminum plants sold power at a direct power trial sale in March, and now this right to sell will be expanded to power companies with input voltages of no less than 110 kilovolts and power plants which began operation after 2004. Final electricity prices in the pilot program will be determined by three components: first, the ex-generator prices paid to power plants which are negotiated directly between end-users and power plants; second, fees paid to the government via taxes; and finally, transmission fees charged by grid companies.

On June 2, one of China's top metal producers, Chinalco, announced that it has fully taken up its allocation of Australian miner Rio Tinto Plc.'s US$ 15.2 billion rights issue and will remain the company's biggest single shareholder. Earlier this month, debt-ridden Rio Tinto withdrew from a proposed tie-up with Chinalco in favor of a rights issue priced at A$ 28.29 per share in Australia and 14 pounds in London, with 21 new shares offered for every 40 shares held. Based on the current share price, Chinalco needs to invest more than US$ 1.4 billion in order to maintain its 12 percent stake in the London-listed Rio Tinto stock, according to Caijing calculations.

Effective June 30, China raised gasoline and diesel prices by around 9 percent to reflect rising crude oil prices on the international market. The National Development and Reform Commission announced its intention to raise domestic prices for both gasoline and diesel by 600 yuan per ton. This was the second hike this month after the commission moved to raise gasoline and diesel prices by 6.13 percent and 6.9 percent, respectively, on June 1.