CoalMint’s stock report reveals that thermal coal stocks at Mundra Port recorded the highest decline of 17% w-o-w to 1.59 million tonnes (mn t) in week 36 (29 Aug’21-5 Sept’21) amid increased consumption from power plants due to domestic coal shortage.
Thermal coal stock of Adani Power at Mundra Port fell by 52% w-o-w to 0.22 mn t this week, while that of Jindal Steel and Power fell by 29% w-o-w to 0.25 mn t. The inventory of Adani Power has been on a declining trend over the last two weeks amid increased power demand in Gujarat.
Owing to an acute coal shortage at power plants, the ministry of Power had issued a statutory order allowing plants of Tata Power and Adani Power in Mundra to sell electricity on the power exchanges for a month.
However, owing to soaring coal prices this year, imports by Adani Power’s and Tata Power’s plants in Mundra recorded a significant y-o-y decline of 45% and 63% in Jul’21 to 0.56 mn t and 0.37 mn t respectively, as per data from the Central Electricity Authority.
On the other hand, thermal coal stock of Adani Enterprise at Mundra Port recorded a rise of 42% w-o-w to 0.61 mn t in week 36 due to arrival of new South African coal vessel.
Thermal coal stocks fall 13% at Indian ports
An improvement in imported coal sales over the last two weeks led to a decline in coal stock at major ports in India. The prevailing shortage of domestic coal has compelled end-users to book high-priced imported coal. Subsequently total thermal coal stock in week 36 also recorded a decline of 13% w-o-w to 12.9 mn t.
Although, thermal coal stock at Gangavaram Port fell by 7% w-o-w, it stood the highest amongst others at 1.70 mn t. Adani Enterprise has stocks of 0.6 mn t at the port (down 5% w-o-w), and BSP, Indian Coke, and Swiss Singapore together have combined stocks of 1.10 mn t (down 8% w-o-w).
Highest thermal coal receivers at ports:
| Port | Week 35 | Week 36 | Difference (in %) |
| Adani Enterprise | 2.31 | 2.41 | +4.33 |
| Adani Power | 1.83 | 1.57 | -14.21 |
| Agarwal Coal | 0.81 | 0.78 | -3.70 |
| Essar Steel | 1.71 | 0.78 | -54.6 |
| Ultratech Cement | 0.42 | 0.39 | -7.14 |
*Quantity in mn t
Amongst various traders and end-users, thermal coal stock of Essar Steel recorded the highest decline of 55% w-o-w to 0.78 mn t.
Thermal coal inventory of end-users such as NLC TamilNadu Power and India Coke and Power recorded a fall of 0.15 mn t and 0.21 mn t respectively w-o-w.
Outlook
Amid lower number of vessels arriving at the ports due to elevated imported coal prices and increased buying of imported coal, thermal coal stock at major ports are expected to reduce further in the weeks ahead.
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