Thermal coal stocks at Indian ports increase due to improved demand
Jindal Steel and Power stocks rise by 73%, reaching 0.10 mnt
Thermal coal stocks across 21 Indian ports increased by 4% w-o-w on 11 March, 2024, according to BigMint data. During week 10 of 2024, thermal coal stocks at Indian ports stood at 13.71 million tonnes (mnt) compared to 13.22 mnt in week 9, reflecting an increase of 4% w-o-w.
This increase in coal stock at ports can be attributed to improved demand from India for Indonesian coal. Indian demand for Indonesian coal is expected to increase from the second half of March in India, driven by improved demand from coastal power plants and the cement sector, leading to an increase in coal stocks at ports.
Adani Enterprise witnessed surge in coal stocks by 14% at Dhamra port during week 10 of calendar year 2024 (CY24), reaching 0.49 mnt. Adani Power stocks fell by 5% w-o-w, reaching 0.38 mnt at Mundra port.
At Paradip, Jindal Steel and Power stocks rose by 73%, reaching 0.10 mnt. At Tuticorin, NTPL stocks plunged by 11% to 0.43 mnt during the reviewed week.
Dhamra port recorded a rise of 23% w-o-w, with coal stocks reaching 1.76 mnt, compared to 1.43 mnt last week. Coal stocks at Mundra port remained almost stable totalling 1.32 mnt. Thermal coal stocks at key ports like Tuticorin (1.32 mnt) and Paradip (1.28 mnt) experienced 8% and 10% rise w-o-w. At Dahej (0.86 mnt), stocks decreased by 8% during the reviewed week.
Adani Enterprise reported total stocks of 4.64 mnt, up by 8% w-o-w. Adani Power reported total stocks at 1.20 mnt, down by 9% w-o-w. Agrawal Coal and Tata Steel (up by 15%) had stocks of 0.65 mnt and 0.50 mnt, respectively.
Outlook
Coal stocks are likely to increase in the upcoming week as demand for Indonesian coal from India is anticipated to rise in the latter half of March once summer is fully underway. This week has witnessed a surge in demand for South African coal from India. Additionally, as Indonesia’s rainy season approaches its end, it causes ease in supply constraints, which could further bolster the rise in coal stocks at ports.