Coal Supplies to Power Plants Surge 36%
The daily drawdown of coal stocks has slowed sharply, falling by more than half from September to October, as rail loading averages over 465 rakes per day
Coal supplies to power plants have grown 36% from the low in September, according to the ministry. This increase has led to a moderation in the rate of stock depletion, with the daily drawdown of coal stocks falling sharply.
The daily drawdown of coal stocks has slowed significantly, from 0.243 MT per day in September to 0.116 MT per day in October. This represents a decrease of more than half, indicating a substantial improvement in coal supply.
Rail loading has also strengthened, averaging over 465 rakes per day in October. The 470-rake target was achieved on three consecutive days in October, further demonstrating the improvement in coal supply. The rake position has also strengthened, contributing to the overall stability of coal supplies.
## Why it matters The improvement in coal supplies is crucial for power plants, as it helps to ensure a stable supply of electricity. The coal stock position needs to be viewed alongside the improvement in supplies since the September trough. Although stock rebuilding is yet to commence, the slowing of stock depletion is a positive sign.
The increase in coal supplies and the moderation in stock depletion are expected to have a positive impact on the power sector. With the daily drawdown of coal stocks slowing and rail loading strengthening, the sector is likely to experience greater stability in the coming months.
