Coal India (which is responsible for over 75% of India’s coal output) produced 84.5 million tons of coal last month. This is up month-on-month by 9.8 million tons (13%) but is down year-on-year by 1.3 million tons (-2%). Previously, Coal India’s production had grown on a year-on-year basis for four straight months. While it is helpful that Coal India’s production has returned to a contraction, problematic for the dry bulk market is that production last month again fared better than India’s coal-derived electricity generation.
Offtake (the amount sent to customers) totaled 69.5 million tons. This is up month-on-month by 7.5 million tons (12%) and is up year-on-year by 500,000 tons (1%). Previously, offtake had contracted on a year-on-year basis for six straight months.
With offtake again coming in below output, India’s stockpiles have climbed even further and have set another record. They now stand at approximately 148 million tons. This is up month-on-month by 15 million tons (11%) and is up year-on-year by 22 million tons (29%).
