Domestic coal demand may be subdued in Q2 on lower demand: Report

Demand for domestic coal is likely to be subdued in the second quarter of the current financial year, due to lower demand from end-user industries amid the COVID-19 pandemic along with high inventory at power stations, according to a report by India Ratings.

The rating agency said domestic coal production remained subdued for the third consecutive month in June 2020 year-on-year as well as month-on-month due to low power demand and higher inventory at power stations.

Thus, the coal offtake reduced in June 2020 year-on-year but improved month-on-month with the gradual relaxation in lockdown norms, the agency said.