Coal India Output Likely To Slip 4% In January After Months Of Growth
Coal India Ltd.'s dry fuel production is likely to snap a five-month growth streak to register a decline in January, owing to high pithead stock, sources said on Sunday.
Coal production for the month is likely to be around 60.2 million tonnes compared with the corresponding period a year ago, when the output was at 63.11 million tonnes, they said.
Till Jan. 29, the output was 56.24 million tonnes, and aggregate production for the 11-month period of the current fiscal (April-January) will be about 454 million tonnes, the sources said.
Coal India is targeting an output of 630-640 million tonnes till March.
The world's largest miner has been registering robust growth since August 2020, as the nationwide lockdown began to ease, when it recorded a 7.1% year-on-year rise, followed by a 31% rise in September, 18% in October and 3.4% in November.
Total coal offtake for the Kolkata-based company in the first month of 2021 is expected to be 53.3 million tonnes, resulting in a decline of about 5.5% over the year-ago period.
Coal demand from the power sector is on the rise, but with 63 million-tonne of pithead stock, non-power sector requirement will also be crucial for the mining behemoth.
Demand for the dry fuel is set to revive in 2021 with a 3.8% increase, according to a Moody's Investors Service report.