Coal demand softens as monsoon arrives early, stocks pile up at mines

An early monsoon, subdued heat, and tepid power demand have left coal miners with large pithead stocks, prompting a rethink of coal evacuation plans and long-term supply linkages

The coal peak has come and gone this summer, possibly the shortest spell ever recorded. The early onset of the monsoon and benign temperatures elsewhere have belied expectations of soaring demand for power and, consequently, for coal. The national grid has not seen aggregate demand soar beyond 220 GW even in the worst of days.

 

The coal-producing companies are thus sitting on a pithead stock of 160 million tonnes this week. Data from these companies show Coal India has run up a pithead stock (coal stocks waiting for buyers) of 102 million tonnes, with others, including private sector miners, having