https://www.miningweekly.com

Coal India sales outpace production by record to ease stockpiles

2nd August 2017

By: Bloomberg

  

Font size: - +

NEW DELHI – Coal India’s sales outpaced production by a record last month as the world’s biggest miner continued its efforts to reduce stockpiles.

Shipments in July rose 6.9% from the same month a year ago to 44.33-million metric tons, the ninth straight year-on-year gain, while  production eased a fourth month, sliding 0.3% to 36.64-million, according to Bloomberg calculations based on an exchange filing by the company Tuesday. Sales surpassed output by 7.69-million tons, the widest margin on record.

"The destocking of the inventory may continue until at least the end of the monsoon season in September," said Goutam Chakraborty, an analyst at Emkay Global Financial Services. "Coal India is producing only as much as there is a demand for. So, we are unlikely to see a spurt in production until the demand improves considerably."

Power plants, Coal India’s biggest customers, have bought less coal and tried to burn through their own inventories amid seasonally weaker power demand during the rainy season as construction, cement and steel companies slow activity. Production by the Kolkata-based miner also eases as heavy rains can flood mines.

Coal India held 49.9-million tons of inventory at its mines as of July 1, compared with 68.6-million tons about three months earlier, according to the federal coal ministry. The Kolkata-based miner plans to reduce inventories to below 40-million tons, chairperson Sutirtha Bhattacharya said in May.

Sales during the first four months of the fiscal year ending March 2018 have risen 4.1%, while output has dropped 4.3%, according to the company’s filing.

Edited by Bloomberg

Comments

Latest Multimedia

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.171 0.209s - 88pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: