As we discussed in Commodore Research's most recent Weekly Executive Report, Coal India (which is responsible for over 75% of India’s coal output) produced approximately 62.1 million tons of coal last month. This is down month-on-month by 23.7 million tons (-28%) but is up year-on-year by 300,000 tons (1%). It is normal for production to plummet in April (a surge always occurs in March). The year-on-year change is always most important to us. Noteworthy is that production had previously fallen on a year-on-year basis for three straight months.
Offtake (the amount sent to customers) totaled 63.4 million tons, which marks a month-on-month drop of 5.6 million tons (-8%) and a year-on-year drop of 900,000 tons (-1%). This has marked the first time since September that Coal India’s offtake has exceeded production.
