Thermal coal stocks remain stable amid subdued demand from India
Jindal Steel and Power stocks drop by 20%, reaching 0.08 mnt
Thermal coal stocks across 21 Indian ports remained stable w-o-w on 18 March, 2024, according to BigMint data. During week 11 of 2024, thermal coal stocks at Indian ports stood at 13.70 million tonnes (mnt) compared to 13.71 mnt in week 10. The stable coal stock at ports can be attributed to subdued demand from India, largely due to high domestic production.
Rashmi Group witnessed drop in coal stocks by 18% at Dhamra port during week 11 of calendar year 2024 (CY24), reaching 0.32 mnt. Adani Power stocks increased by 6% w-o-w, reaching 0.40 mnt at Mundra port.
At Paradip, Jindal Steel and Power stocks dropped by 22%, reaching 0.08 mnt. At Tuticorin, Dhar coal stocks plunged by 18% to 0.12 mnt during the reviewed week.
Dhamra port recorded a drop of 10% w-o-w, with coal stocks reaching 1.57 mnt, compared to 1.76 mnt last week. Coal stocks at Mundra port plunged by 21% totalling 1.01 mnt. Thermal coal stocks at key ports like Tuticorin (1.23 mnt) and Paradip (1.22 mnt) experienced 7% and 5% drop w-o-w. At Dahej (0.90 mnt), stocks increased by 5% during the reviewed week.
Adani Enterprise reported total stocks of 4.64 mnt, down by 4% w-o-w. Adani Power reported total stocks at 1.31 mnt, up by 10% w-o-w. Agrawal Coal (up by 4%) and JSW Steel (drop by 7%) had stocks of 0.68 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 at the end 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 eases supply constraints, which could further bolster the rise in coal stocks at ports.