Coal prices are likely to be subdued in the current financial year on the back of low power demand and piling inventory at power stations, India Ratings and Research (Ind-Ra) said in its first edition of credit news digest published on Monday.
Domestic coal production remained subdued for the third consecutive month in June. Accordingly, the coal offtake reduced but improved month-on-month with the gradual relaxation in COVID-19 lockdown norms.
In July too, production and offtake are likely to be subdued due to union strikes at mines against privatisation along with the onset of monsoon season, said Ind-Ra.
However, China’s coal production has bounced back to exceed the previous year’s performance despite the COVID-19 outbreak.