Indian Coal Production to Improve in 2020 - WoodMac

Research firm Wood Mackenzie is of the view that Indian coal production will improve in 2020. WoodMac Principal Analyst Mr Pralabh Bhargava said “Higher rainfalls not only resulted in lower coal generation but also hindered domestic coal production, however, we expect domestic production to improve in 2020. In addition to a decline in coal-based power generation in H2 2019, cement and steel production were also down 1.8 per cent and 0.3 per cent, respectively. This resulted in a decline in coal demand. We expect coal consumption to grow only 0.5 per cent in 2019 as compared to 8.5 per cent in 2018 but expect consumption to improve in 2020 with a growth rate of 4.4 per cent. With power generation and cement and steel production slowing, stocks of domestic coals have started to increase in India.” He said “If the economy doesn't pick up in early 2020, and power, cement and steel demand remain slow, we see a downside risk to our coal imports forecast. Currently, we are forecasting 181 million tonnes of thermal coal and 65 million tonnes of coking coal imports in 2020.”