- Coal stocks at Krishnapatnam Port down 11% w-o-w
- Higher freight rates inhibit purchases
Thermal coal stocks across 23 Indian ports remained stable w-o-w on 10 June 2024, according to BigMint data. During week 23 of CY24, thermal coal stocks at Indian ports stood at 16.22 million tonnes (mnt) compared to 16.23 mnt in week 22.
Miners in Indonesia are holding onto higher offers, anticipating rising summer demand in China. They are also trying to avoid creating an oversupply situation. This cautious approach on the supply side has helped prevent significant fluctuations in port stocks.
The less favourable freight rates have led Indian buyers to avoid additional purchases from the seaborne market. Consequently, Indian demand for imported coal has been lower, aiding in the stability of port stocks.
At Tuna Port, JSW Mineral’s stocks surged sharply by over twofold in week 23 to 0.39 mnt. At Kandla Port, Ultratech cement coal stocks increased by 55% to 0.23 mnt.
Magdalla remained largely stable w-o-w in coal stocks, with inventories touching 1.81 mnt in week 23 as comapred in week 22. Coal stocks at Vizag Port fell by 4% w-o-w to 1.32 mnt. Thermal coal stocks at key ports like Tuticorin (1.10 mnt) and Mundra (1.09 mnt) experienced an 11% and 15% hike, respectively. At Mangalore, stocks stood at 0.85 mnt, a decrease of 5% w-o-w.
Thermal coal stocks of Adani Enterprises remained the highest in week 23 of 2024 at 5.41 mnt followed by Agrawal Coal at 1.03 mnt and Jindal Steel and Power at 0.81 mnt in week 23 of 2024.
Outlook
Portside thermal coal stocks in India are expected to remain relatively stable in the coming week, with minor port-specific fluctuations influenced by local demand, logistics, and international market conditions.