The rise in coal stocks can be linked to increased demand for coal during the summer
Adani Enterprise stocks rise by 45%, reaching 0.22 mnt
Thermal coal stocks across 21 Indian ports increased by 2% w-o-w on 1 March, 2024, according to BigMint data. During week 13 of 2024, thermal coal stocks at Indian ports stood at 14.42 million tonnes (mnt) compared to 14.14 mnt in week 12.
The rise in coal stocks at Indian ports can be attributed to the growing demand for coal within India, particularly as the summer season approaches, evident from the latter half of March. This increase in demand is primarily fuelled by heightened requirements from power plants. As a result, there has been a buildup of coal stocks at ports.
Adani Power witnessed uptick in coal stocks significantly at Dhamra port during week 13 of calendar year 2024 (CY24), reaching 0.22 mnt. Adani Enterprise stocks increased by 45% w-o-w, reaching 0.22 mnt at Tuticorin port. Hindalco Industries coal stocks at Dahej surged by 28% w-o-w to 0.06 mnt.
At Paradip, Jindal Steel and Power stocks rose by 30%, reaching 0.11 mnt. At Navalakhi, Agrawal Coal stocks rose by 15% to 0.05 mnt during the reviewed week.
Dhamra port recorded coal stocks remaining almost stable w-o-w, with stocks reaching 1.61 mnt, compared to 1.59 mnt last week. Coal stocks at Tuticorin port increased by 10% w-o-w to 1.38 mnt. Thermal coal stocks at key ports like Mundra (1.19 mnt) and Krishnapatnam (1.24 mnt) experienced 4% and 2% rise w-o-w. At Dahej (1.02 mnt), stocks increased by 6% during the reviewed week.
Adani Enterprise reported total stocks of 4.57 mnt, drop by 3% w-o-w. Adani Power reported total stocks at 1.64 mnt, increased by 21% w-o-w. Agrawal Coal (down by 5%) and Tata Steel (down by 4%) had stocks of 0.68 mnt and 0.45 mnt, respectively.
Outlook
It is expected that coal stocks will see an uptick in the forthcoming week due to the anticipated increase in demand for Indonesian coal from India, especially as April progresses and the summer season gains momentum. This week has seen a notable rise in demand for South African coal from India. Moreover, with Indonesia’s rainy season nearing its conclusion, supply constraints are beginning to alleviate, potentially contributing to the further growth of coal stocks at ports.