- Domestic supply disruptions support selective import enquiries
- Stock rebuilding remains uneven across major ports
India’s thermal coal inventories at major ports increased 1.4% w-o-w to 13.67 mnt in week 34 from 13.48 mnt in week 33, as higher stocks at Mundra, Navlakhi, Tuna and Karaikal offset declines at Magdalla, Mangalore and Vizag. The marginal increase suggested continued replenishment, but not a broad recovery in import demand. Monsoon-related domestic coal dispatch issues, tighter preferred-grade availability and stronger sponge iron prices continued to support enquiries, while high import costs kept buying largely requirement-based.
Stock movement remains mixed
The latest increase was driven by sharp gains at several ports. Navlakhi stocks rose 56.9% w-o-w to 0.79 mnt from 0.50 mnt, while in Mundra stocks increased 9.9% to 1.56 mnt. Tuna recorded the largest percentage increase, with stocks rising 260% to 0.26 mnt from 0.07 mnt. Karaikal and Haldia also recorded sizeable increases.
However, several major ports moved in the opposite direction. At Magdalla stocks declined 24% to 0.68 mnt, while Mangalore saw a decline of 16.9% to 0.43 mnt and in Vizag inventories dropped 20.9% to 0.21 mnt. Krishnapatnam, which had recorded a sharp increase in the previous week, saw a decline of 4.8% to 1.51 mnt.
The divergence suggests that stock levels were being shaped more by individual cargo arrivals and evacuation schedules than by a uniform change in demand. The overall increase therefore remained modest despite substantial movements at individual ports.
Importer stocks show selective replenishment
Inventory movements among major holders also remained mixed. Adani Enterprises’ stocks increased to 4.98 mnt in week 34 from 4.86 mnt, while Adani Power rose to 0.57 mnt from 0.55 mnt. Ultratech Cement also increased stocks to 0.55 mnt from 0.50 mnt.
In contrast, Agarwal Coal’s inventory declined to 0.57 mnt from 0.63 mnt, indicating continued evacuation of available material. ArcelorMittal’s stocks increased marginally to 1.31 mnt from 1.29 mnt, while NTPL’s rose to 0.40 mnt from 0.38 mnt.
The contrasting movements indicated that buyers and traders were managing inventories according to individual requirements rather than rebuilding stocks across the market.
Domestic supply issues support import enquiries
Despite the rise in port stocks, market sentiment remained relatively firm because domestic coal availability continued to face monsoon-related disruptions. Slower dispatches from coal-producing regions, reduced auction frequency and difficulty in securing preferred grades encouraged some consumers to consider imported coal.
Sponge iron prices also strengthened sharply during the week, improving buying sentiment across the ferrous value chain. However, higher South African and Indonesian coal replacement costs, along with requirement-based procurement, limited the scope for aggressive inventory building.
The increase in port stocks therefore did not necessarily signal stronger underlying consumption. Some cargoes were being replenished while buyers continued to remain cautious about committing to higher-priced imports.
With domestic coal supply still affected due to logistics and rake availability, imported coal remained relevant for consumers unable to secure preferred grades. However, unless fresh cargo evacuation accelerates, further inventory accumulation could increase pressure on traders to clear material.
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