Coal news and updates

October core sector flat at 3.2%; coal production grows

Growth in output of India's eight "core" sectors for the month of October was flat at 3.2 percent due to drop in crude oil and steel production. The growth remain unchanged when compared to the month of August. The eight core sector industries include coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity. The government data released today showed that coal production grew at 6.3 percent versus 1.9 percent growth month on month (M-o-M). However, crude oil production for the month of October was down 2.1 percent versus 0.1 percent decline M-o-M) and steel production was down 1.2 percent versus 2.5 percent decline in the month of September. The natural gas production for the month of October was down at 1.8 percent versus 0.9 percent growth in the month of September. Petroleum refinery products output too was down at 1.8 percent versus 0.5 percent month on month growth. Fertilliser production grew at 16.2 percent versus 18.1 percent M-o-M. However, cement production was up 11.7 percent versus 1.5 percent decline in September and electricity grew at 8.8 percent versus 10.8 percent growth M-o-M. The cumulative growth rate in April-October of 2015-16 came in at 2.5 percent, much lower than 5.6 percent in the first seven months of the last fiscal. Reacting to the data, Anubhuti Sahay, Associate Economist, Global Research, Standard Chartered Bank said: “ If I look at the last year’s number that is for October 2014, the core sector grew at 6.3 percent. So, on back of it if India was able to maintain its core sector production at 3.2 percent in October that looks like a pretty decent growth. If this momentum is maintained then probably it would helps the Q3 numbers.”

source: http://www.moneycontrol.com