India’s total coal dispatches stood at 74.3 million tonnes (mnt) in November 2022, up by 4.4% y-o-y compared to 71 mnt in November 2021, as per data maintained with CoalMint. Meanwhile, on a m-o-m basis, the offtake has increased by 10.5%.
An increase in production has pushed up the dispatches in November 2022. India’s coal production in November stood at 75.87 mnt, a rise of 12% m-o-m.
Meanwhile, production exceeded dispatches in November, resulting in the addition of 1.55 mnt of coal to inventory. This trend is usually seen from December onwards. Notably, it is a seasonal phenomenon — when production exceeds dispatches –and it happens in the latter part of a financial year. However, this year, the trend set in early, from November, indicating a positive sign in terms of supply.
Production in November 2021 was almost 68 mnt while dispatches were at 71 mnt. Production fell short by 3 mnt against offtake in November 2021.
Dispatches up in Apri-Nov
Notably, total dispatches in April-November, 2022 increased 7.45% y-o-y to 558 mmt. Coal India’s dispatches have grown 5.7% y-o-y while dispatches from captive mines have increased 30% y-o-y in the same period. However, Singareni Collieries Company Limited (SCCL) could not maintain its dispatches compared to last year, falling short by 5%.
Dispatches to non-power sector up
Coal offtake to the non-power sector has risen by 9% y-o-y to 12 mnt in November 2022. This suggests that after being restricted during the summer due to excessive power demand, non-power sector supplies have started to return to normal.
Among non-power consumers, captive power producers received the highest quantity of 4.43 mnt — a rise of 33% y-o-y. Meanwhile, the steel sector’s coal consumption increased 43% y-o-y to 0.85 mnt. During the same time, sponge iron coal dispatches fell 21.5%.
Meanwhile, offtake to the power sector was 62.30 mmt, a 3.5% increase y-o-y. The coal allocation to the power sector remained range-bound as power demand stabilised amid favourable weather.
Company-wise dispatches
Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) and captive/other miners registered marginal growth.
CIL’s offtake in November increased 5% y-o-y to 59.4 mnt. Bharat Coking Coal Limited and Central Coalfields Limited (CCL) were the only subsidiaries of CIL to post double-digit y-o-y growth in offtake. However, dispatches from Western Coalfields Limited (WCL) and Nothern Coalfields Limited NCL) have fallen.
SCCL and captive miners’ offtake stood at 6 mnt and 9 mnt respectively, up 3% y-o-y for both.
Leave a Reply