Because of weak demand and high domestic coal stocks, Coal India's (CIL) production and supplies to domestic buyers fell again in June from the previous year. Posting a drop of 12.8 percent from a year earlier to 39.2 million tonnes, CIL's output fell for a third straight month in June.
The company's output also fell in May, decreasing by 11.3 percent on the year to 41.43 million tonnes. CIL's June dispatches to buyers fell by 15 percent from a year earlier to 41.61 million tonnes, logging four straight months of falls. Its May supplies fell by 23.3 percent from a year earlier to 39.95 million tonnes.
As the company is focusing on cutting its inventories, supplies outpaced production. Inventories currently stand at around 75 million tonnes. CIL has moderated its output as it looks for ways to trim stocks and lift sales amid weak demand.
Coal consumption at utilities remained weak last month as coal-fired power generation slumped compared with the year-earlier period. National coal-fired generation dropped by 22.09TWh from a year earlier to 69.56TWh in May.
Utilities across the country also have total inventories of close to 47.16 million tonnes, which are enough to meet consumption for 27 days. India's thermal coal imports have fallen sharply since the virus outbreak, with the country's receipts of overseas thermal coal slumping to 8.43 million tonnes in May from 15.16 million tonnes a year earlier.
