*Summer power demand may see port coal inventory rising
Thermal coal stocks across 21 Indian ports increased by 9% w-o-w on 15 March, 2024, according to BigMint data. During week 15 of 2024, thermal coal stocks at Indian ports stood at 15.17 million tonnes (mnt) compared to 13.87 mnt in week 14.
The rise in coal stocks at Indian ports can be attributed to the growing demand for coal in India, particularly as the summer season has arrived from April. This increase in demand is primarily fuelled by heightened requirements from power plants. As a result, there has been a build-up of coal stocks at ports.
Rashmi Group witnessed uptick in coal stocks significantly at Dhamra port during week 15 of calendar year 2024 (CY24), reaching 0.40 mnt. Adani Enterprise stocks decrease by nearly 12% w-o-w, reaching 0.18 mnt at Tuticorin port. Hindalco Industries coal stocks at Dahej significantly surged w-o-w to 0.99 mnt.
At Paradip, Jindal Steel and Power stocks drop by 30%, reaching 0.06 mnt. At Hazira (Adani), Adani stocks rose by 11% to 1.02 mnt during the reviewed week.
Port-wise thermal coal stock
Dhamra Port recorded coal stocks fell by 6% w-o-w, with stocks reaching 1.49 mnt in Week 15, compared to 1.59 mnt in Week 14. Coal stocks at Mundra Port surged significantly w-o-w to 2.17 mnt. Thermal coal stocks at key ports like Magdalla (0.83 mnt) and Gangavaram (0.80 mnt) experienced 2% and 6% fall w-o-w. At Navalakhi (0.59 mnt), stocks increased by 17% during the reviewed week.
Company-wise thermal coal stock
Adani Enterprise reported that total stock levels dropped by 17% w-o-w to 3.78 mnt in Week 15, down from 4.54 in Week 14 of CY24. Adani Power reported total stocks at 1.64 mnt, increase by 6% w-o-w. JSW Steel coal stocks drop by 16% at 0.51 mnt. Agrawal Coal stocks surged by 16% w-o-w to 0.69 mnt.
Outlook
Coal stocks are likely to increase in the coming week due to the expected rise in demand for thermal coal in India, especially as April progresses and the summer heat intensifies. This week, India has increased its demand for South African coal. Moreover, as Indonesia’s rainy season approaches its end, supply constraints are easing, which may further boost coal stocks at ports.