Domestic thermal coal supplies to Indian utilities fell on the year in June as heavy rains affected coal mining and logistical operations.
Combined coal supplies to utilities from domestic sources such as state-controlled Coal India (CIL), Singareni Collieries (SCCL), and captive blocks slipped to 64.18mn t, down by 1.2pc from 64.93mn t a year earlier, provisional data from India's coal ministry show. Supplies were also down from 68.39mn t in May.
The supplies eased as heavy rains towards the end of last month affected CIL's mining as well as cargo-loading, unloading and other logistical operations. CIL — which meets more than 80pc of India's coal needs — produced 58mn t of coal in June, up by 12pc from a year earlier. But output slipped from 59.9mn t in May as seasonal monsoon rains began to spread through the country around the last week of June.
The rains tempered hot weather conditions, leading to a month-on-month decline in power consumption in June. But the country's coal-fired generation rose to 103.25TWh in June from 99.86TWh a year earlier. In comparison, India's coal-fired generation was at 105.9TWh and 106.03TWh in the summer months of April and May, respectively. Seasonal rains could pressure domestic coal production and supplies in July and August, potentially buoying demand for imported coal. Seaborne receipts rose by 2.29mn t on the year to 17.76mn t in May, according to shipbroker Interocean's data.
Coal inventories at Indian power plants were around 35.88mn t as of 30 June, equivalent to just under 13 days of consumption, according to data from the Central Electricity Authority (CEA). This was down from 36.9mn t as of 31 May. Coal inventories at CIL's pitheads was at 57.97mn t as of 30 June, down from 61mn t on 1 June.
Supply mix
CIL supplied 49.99mn t of coal to the power sector in June, down from 51.33mn t a year earlier and 53.01mn t in May.
Supplies to utilities by fellow coal producer SCCL rose to 4.97mn t in June, from 4.50mn t a year earlier, but slipped from 5.36mn t in May. The on year increase came as SCCL's output and overall coal supplies rose compared to June 2022. SCCL produced 5.66mn t of coal in June this year, up by 1.8pc from from a year earlier, while its overall supplies increased by 6pc on the year to 5.79mn t.
Captive coal block producers and other small government mining entities comprised the remainder of the supply to utilities last month.
Data on domestic coal supply to Indian utilities do not include dispatches to captive power plants set up by industries. Supplies to such captive utilities — from sources such as CIL, SCCL and captive coal blocks — rose to 4.39mn t in June, up by 62pc from 2.71mn t a year earlier, but edged lower by 2.2pc from 4.49mn t in May.
