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Indian Coal Output Continues to fall YoY

Coal News - Published on Tue, 16 Jun 2020

Image Source: Indian Coal Output
Care Rating in latest report said that India's coal production picked up marginally by 3% in May 2020 over the previous month as India slowly opened up for the businesses but it was still down sharply from year-ago levels. On a y-o-y basis, coal output fell by 15% in May 2020. The nationwide-wide lockdown which came into effect on 25 March brought economic activities to a sudden standstill as many factories and offices were shut and operations suspended. This slashed electricity demand, thus affecting the demand for coal and causing inventories to swell to record levels. The combined inventories of coal with power plants and at pit-heads and non-pit-heads of commercial coal mining companies in India have risen to three-months of average coal production seen in last fiscal year.

The lockdown measures were gradually eased in May in several states and large cities, including Delhi, Bengaluru and Hyderabad that decided to reopen some businesses and limited public transport. However demand for coal did not see any significant pick up. Several manufacturing companies were unable to restart operations mainly due to shortage of labour and liquidity constraints. Power plants were not very keen to lift coal due to muted demand and high inventories and dispatch of coal fell by a sharp 26.5% y-o-y in May. Thermal power generation has seen a near 20% month-on-month decline in April 2020. Thermal plant load factor declined to 42.4% in April 2020 from 60.3% in February 2020 on account of lower demand.

Domestic coal output (mt)689.0728.7729.12.6%7.9%0.1%
Imports (mt)213.0235.3243.08.9%13.0%3.3%
Total (mt)902.0964.0972.14.1%9.1%0.8%
Steel output (mt)106.0110.9109.25.6%7.6%-1.5%
Cement output (mt)298.0337.0334.06.3%13.3%-0.8%
Thermal power generation (bu)1037.01072.01044.04.3%3.4%-2.6%

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Posted By : Yogender Pancholi on Tue, 16 Jun 2020
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