INDIA DATA: July coal output rises 6% on year, supply to power sector grows 4%

India produced 74 million mt of coal in July, up 6.4% year on year, federal coal ministry data showed Aug. 6, as the country aims to cut import dependence.

India's total coal production in April-July was 321.39 million mt, up 9.6% from the same period a year ago.

Total dispatch also grew 5.4% year on year to 80.47 million mt in July, government data showed. Of the total dispatch, the share to the power sector increased 4% on the year to 65.49 million mt.

India's coal dispatch to non-regulated sectors, including sponge iron and steel, rose 12.4% year on year in July. Compared with July 2023, dispatch to the steel sector was up 1.8%, while for cement it fell 10.1%.

Overall coal dispatch in the first four months of financial year 2024-25 (April-March) was 343.69 million mt, up 8.4% from the corresponding period a year ago, government data showed.

Platts assessed the price of India-delivered 4,200 kcal/kg GAR averaged $64.19/mt in July, up from $62.19 over the same period the previous year, S&P Global Commodity Insights data showed. Platts last assessed the grade at $63/mt CFR India on Aug. 5, according to Commodity Insights data.

Demand for spot cargoes in the seaborne market from India was largely soft due to the ongoing monsoon season and availability of stockpiles at power plants. Demand is expected to increase as power plants begin restocking for post-monsoon.

Indonesia remained the top supplier of thermal coal to India in July, followed by South Africa and Australia, S&P Global Commodities at Sea data showed.

Production by state-owned Coal India Ltd. stood at 55.04 million mt in July, up 2.5% year on year, while its dispatch to utilities totaled 60.33 million mt, rising 1.4% year on year, the data showed.

Additionally, coal production by captive and commercial mines in July stood at 14.73 million mt, growing 26.97% from the previous year. These mines dispatched 15.83 million mt of coal over the same period.

Coal-based power generation registered a growth of 8.02% on the year in July, while overall power generation in the month was 8.26% higher year on year.

However, on a month-to-month basis, coal-based power generation decreased 6.72% and total power generation fell 1.74% in July compared with June, as higher rainfall reduced cooling and industrial demand.

Coal stocks held by all coal companies as of July 31 stood at 86.80 million mt, with power plants holding 45.8 million mt, enough for more than 16 days of coal burn, government data showed.

India has proposed to set up an additional minimum 80 GW coal-based capacity by FY 2031-32 and domestically produce 1.5 billion mt by FY 2029-30, according to a coal ministry statement Aug. 5.