*At Navlakhi, thermal coal stocks increase by 21% last week
Thermal coal stocks across 21 Indian ports remained stable w-o-w on 22 March, 2024, according to BigMint data. During week 16 of 2024, thermal coal stocks at Indian ports stood at 14.99 million tonnes (mnt) compared to 15.17 mnt in week 15.
Thermal coal remained stable in week 16 of calendar year 2024 (CY24). The stability in coal stocks at Indian ports can be attributed to subdued demand, as well as an increase in domestic production. Coal India Limited (CIL) 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.
Rashmi Group witnessed an uptick in coal stocks significantly at Dhamra port during week 16 of CY24, reaching 0.46 mnt. Adani Enterprise stocks increased by nearly 17% w-o-w, reaching 0.20 mnt at Tuticorin port. Hindalco Industries coal stocks at Dahej rose w-o-w to 0.05 mnt.
At Paradip, Jindal Steel and Power stocks surged by 51%, reaching 0.09 mnt. At Hazira (Adani), Adani stocks rose by 5% to 1.055 mnt during the reviewed week.
Port-side thermal coal stock
Mundra port recorded coal stocks falling by 32% w-o-w, with inventories reaching 1.47 mnt in week 16, compared to 2.17 mnt in week 15. Coal stocks at Dhamra port increased by 3% w-o-w to 1.54 mnt. Thermal coal stocks at key ports like Magdalla (0.97 mnt) and Tuna (0.59 mnt) experienced 18% and 20% fall w-o-w. At Navlakhi (0.59 mnt), stocks increased by 21% during the reviewed week.
Company-wise thermal coal stock
Adani Enterprise reported that total stock levels increased by 28% w-o-w to 4.83 mnt in week 16, down from 3.78 in week 14 of CY24. Adani Power reported total stocks at 1.66 mnt, up by 7% w-o-w. JSW Steel coal stocks dropped by 9% to 0.49 mnt. Agarwal Coal stocks increased by 7% w-o-w to 0.74 mnt.
Outlook
Coal stocks are anticipated to rise in the upcoming week due to the expected surge in demand for thermal coal in India, particularly as May advances and the summer heat escalates. The Indian government has extended the mandate for imported coal-based power plants to operate at full capacity until 15 October, 2024, anticipating high electricity demand during summer and heatwaves. This will result in increased imports and, consequently, coal stocks at the ports.