* Stocks dip amid slow demand, higher domestic output
*Summer power demand may see port coal inventory rising
Thermal coal stocks across 21 Indian ports dropped by 2% w-o-w on 8 March, 2024, according to BigMint data. During week 14 of 2024, thermal coal stocks at Indian ports stood at 13.87 million tonnes (mnt) compared to 14.42 mnt in week 13.
The decline in coal stocks at Indian ports can be attributed to subdued demand, as well as an increase in domestic production. Coal India Limited typically boosts production ahead of summer to offset losses during the monsoon. Moreover, volatility in Indonesian coal prices has led Indian buyers to adopt a wait-and-watch policy, thereby reducing coal imports.
Adani Enterprise witnessed uptick in coal stocks by 21% at Dhamra Port during week 13 of calendar year 2024 (CY’24), reaching 0.48 mnt. Tata International stocks increased by 39% w-o-w, reaching 0.10 mnt at Tuticorin Port. Hindalco Industries’ coal stocks at Dahej dropped by 4% w-o-w to 0.05 mnt.
At Paradip, Tata Steel stocks fell by 17%, reaching 0.37 mnt. At Kandla, Agrawal coal stocks plunged by 19% to 0.06 mnt during the reviewed week.
Dhamra Port recorded coal stocks remaining almost stable w-o-w, with stocks reaching 1.59 mnt, compared to 1.61 mnt last week. Coal stocks at Tuticorin Port dropped by 3% w-o-w to 1.33 mnt. Thermal coal stocks at key ports like Mundra (1.13 mnt) and Paradip (1.08 mnt) experienced 5% and 13% fall w-o-w. At Gangavaram (0.86 mnt), stocks decreased by 10% during the reviewed week.
Adani Enterprise reported total stocks of 4.54 mnt, remaining constant w-o-w. Adani Power reported total stocks at 1.55 mnt, a decline of 5% w-o-w. JSW Steel coal stocks remained stable at 0.61 mnt. Agrawal Coal stocks fell by 13% w-o-w to 0.59 mnt.
Outlook
Coal stocks may increase in the forthcoming week due to the anticipated rise in demand for Indonesian coal from India, particularly as April progresses and the summer season gains momentum. This week has seen a notable uptick in demand for South African coal from India. Additionally, with Indonesia’s rainy season nearing its conclusion, supply constraints are beginning to alleviate, potentially contributing to further growth in coal stocks at ports.