Thermal coal stocks at Gangavaram Port continue to remain under pressure, falling by 7% w-o-w to 0.81 mnt over 6-10 Feb’22, CoalMint’s stock data reveals.
This has left the port with limited ready stock available, thereby further pushing up portside imported prices. Traders operating at the port have been offering nothing but only advance booking for upcoming cargoes as majority of them have been sold out, market participants inform.
Inventory level at the port has been on a downtrend starting Oct’21 amid limited vessel arrivals from South Africa. The port receives the largest volumes of coal from that country followed by Indonesia.
Although coal stocks at South Africa’s RBCT port have improved slightly to 2.4 mnt, these continue to remain well below the average of 5 mnt amidst the several logistic disruptions at Transnet, South Africa’s national rail operator.
As per CoalMint’s vessel line-up data, vessels carrying a total 0.3 mnt of thermal coal from South Africa arrived at Indian ports between 6-9 Feb’22. Out of this, no vessels were scheduled for Gangavaram Port. A total of 0.2 mnt is set to arrive at the port in the coming days.
An analysis of party-wise data reveals, Adani Enterprise has the highest stock of 0.65 mnt at Gangavaram Port currently, followed by Ultratech Cement at 0.1 mnt.
Several end-users are also seen having their coal stock at the port which includes Godavari Power (0.04 mn t), Bhushan Power (5,000 t), and JSW Steel (3,000 t).
Total thermal coal stocks decline
Total thermal coal stocks at major ports also remain under pressure, falling 8% w-o-w to 10.9 mnt during 6-10 Feb’22 as overall vessel arrival remained weak.
Despite shipments from Indonesia picking up pace, limited arrival from Australia and USA were seen keeping inventory at Indian ports lower.
Party-wise thermal coal stock
Continuing the trend, Adani Enterprise, followed by Adani Power, have the highest quantity of thermal coal at various Indian ports. However, on a w-o-w basis, portside stock of both fell last week.
Interestingly, thermal coal stock of Essar Steel declined the most by 15% w-o-w to 0.50 mnt at Magdalla Port.
*Quantity in mn t
Outlook
Amid volatile thermal coal market sentiments, vessel arrival from various origins is expected to remain subdued which may put further pressure on the existing portside thermal coal stock in the coming weeks.
Leave a Reply