India: Portside thermal coal stocks decline w-o-w amid weak demand, slower inflows

• Buyers continue need-based procurement 
• Imported coal sentiment remains subdued

Portside thermal coal inventories across India declined w-o-w in week 15, falling by 1.5% to 13.33 mnt from 13.53 mnt in the previous week, indicating a slight correction after consecutive build-ups in previous weeks. The easing stocks were primarily driven by slower cargo arrivals and continued evacuation at select ports.

Across regions, trends remained mixed. Some ports witnessed inventory build-up, supported by steady inflows, while several key locations saw drawdowns due to ongoing consumption and limited fresh arrivals. Market participants noted that stock movement remained dynamic, reflecting a balance between supply inflows and evacuation.

Buyer-wise stock position

Stock holdings among key traders and industrial consumers showed marginal changes, with leading players continuing to maintain adequate inventory levels. Buyers largely remained cautious, managing stocks efficiently rather than aggressively building fresh positions.

The preference for maintaining optimal inventory levels reflected uncertainty in imported coal prices and subdued downstream demand, especially from sponge iron and industrial sectors.

Imported coal market scenario

Imported coal sentiment remained weak during the week. South African coal prices continued to soften amid muted demand and rising competition from domestic coal. Indonesian coal remained relatively stable due to supply-side constraints, although buying interest stayed limited.

US-origin coal prices also remained under pressure, driven by inventory build-up and weak industrial demand. Across segments, Indian buyers continued to prefer domestic coal due to cost advantages and geopolitical uncertainties affecting imported coal supply chains.

Market insight

The decline in portside inventories suggests a gradual correction phase following earlier stock build-up. As buyers like cement players shifted their procurement towards the domestic market under cost pressure. However, overall market sentiment remains subdued, with weak demand and cautious buying behaviour continuing to dominate. Unless demand improves, imported coal markets are likely to remain under pressure in the near term.