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 79.8 million tons of coal last month. This is up month-on-month by 4.1 million tons (5%) and up year-on-year by 2 million tons (3%). Coal India’s production has now grown on a year-on-year basis for three straight months. Previously, it had contracted on a year-on-year basis during eight of the prior ten months. Problematic for dry bulk is that coal output fared better than India’s coal-derived electricity last month.
Offtake (the amount sent to customers) totaled 66.3 million tons, which is up month-on-month by 1.4 million tons (2%) but down year-on-year by 2.3 million tons (-3%). Offtake has now contracted on a year-on-year basis during ten of the last twelve months, and again has come in well below output.
With offtake again coming in below output, India’s stockpiles have climbed even further and have set a record. They now stand at approximately 120 million tons. This is up month-on-month by 14 million tons and up year-on-year by 34 million tons (40%).
