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 56.1 million tons of coal last month. This is unchanged from April and is down year-on-year by 7.4 million tons (-12%). Coal India’s production has now contracted on a year-on-year basis for three straight months. Previously, Coal India’s production had grown on a year-on-year basis for four straight months. Last month’s 12% year-on-year contraction has again marked the largest seen since July.
Offtake (the amount sent to customers) totaled 66.7 million tons. This is up month-on-month by 3.5 million tons (6%) and is up year-on-year by 2.7 million tons (4%). Previously, offtake had contracted on a year-on-year basis in seven of the prior eight months.
With offtake again coming in above output, India’s stockpiles have fallen further. They now stand at approximately 130 million tons. This is down month-on-month by 11 million tons (-8%) but up year-on-year by 17 million tons (15%). Prior to the last two months, stockpiles had increased for five straight months.
