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 75.7 million tons of coal last month. This is up month-on-month by 7.7 million tons (11%) and up year-on-year by 3.3 million tons (5%). Coal India’s production has now grown on a year-on-year basis for two straight months. Previously, it had contracted on a year-on-year basis during eight of the prior ten months. Significant is that India’s coal-derived electricity generation has now fared better than coal output in three of the last six months.
Offtake (the amount sent to customers) totaled 64.9 million tons, which is up month-on-month by 2.2 million tons (4%) but down year-on-year by 3.7 million tons (-5%). Offtake has now come in under production for two straight months. Previously, it had exceeded production for seven straight months.
Stockpiles have rebounded further with production again exceeding offtake. They now stand at approximately 106 million tons. This is just 9 million tons (-8%) less than March’s record 115 million tons and up year-on-year by 29 million tons (38%).
