Coal India's output declines amid focus on clearing stockpiles
Output fell 4.3 per cent from a year earlier to 40.74 million metric tonnes.
By Bloomberg | Updated:
By Rajesh Kumar Singh
Coal India Ltd. reported a year-on-year production decline for the second straight month and an increase in shipments, reflecting attempts by the world’s biggest producer to cut inventories.
Output fell 4.3 per cent from a year earlier to 40.74 million metric tonnes, the lowest in three years for the month of May, the company said in a stock-exchange filing. Shipments rose 1.9 per cent to 46.4 million tonnes.
Kolkata-based Coal India will focus on liquidating stockpiles for a few months, Chairman Sutirtha Bhattacharya, said last month. The company will be counting on higher demand from power plants, its biggest customers, to start growing.
“Production will remain under pressure for some more time because of subdued demand and high inventory,” said Goutam Chakraborty, an analyst at Emkay Global Pvt. in Mumbai. “A recovery is possible if power plants start restocking after the monsoons.”
Inventories at Coal India rose 19 per cent during the year ended March 31 to 68.6 million metric tonnes, Coal Minister Piyush Goyal told lawmakers in April. The company is targeting to bring it below 40 million tonnes, according to Bhattacharya.
Coal India Ltd. reported a year-on-year production decline for the second straight month and an increase in shipments, reflecting attempts by the world’s biggest producer to cut inventories.
Output fell 4.3 per cent from a year earlier to 40.74 million metric tonnes, the lowest in three years for the month of May, the company said in a stock-exchange filing. Shipments rose 1.9 per cent to 46.4 million tonnes.
Kolkata-based Coal India will focus on liquidating stockpiles for a few months, Chairman Sutirtha Bhattacharya, said last month. The company will be counting on higher demand from power plants, its biggest customers, to start growing.
“Production will remain under pressure for some more time because of subdued demand and high inventory,” said Goutam Chakraborty, an analyst at Emkay Global Pvt. in Mumbai. “A recovery is possible if power plants start restocking after the monsoons.”
Inventories at Coal India rose 19 per cent during the year ended March 31 to 68.6 million metric tonnes, Coal Minister Piyush Goyal told lawmakers in April. The company is targeting to bring it below 40 million tonnes, according to Bhattacharya.
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