- Inventories high in Mundra, Dhamra
- Higher prices keep buying selective
India’s thermal coal inventories at major ports increased 0.6% w-o-w to 13.48 mnt in week 36 from 13.40 mnt in week 35. The marginal rise came despite continued stock drawdowns at several ports, as higher inventories at Mundra, Dhamra and Tuticorin offset declines elsewhere. Overall sentiment remained firm, with tighter domestic coal availability, stronger imported coal prices and higher freight keeping replacement costs elevated. However, cautious buying limited a sharper increase in port stocks.
Mixed port movements keep market balanced
Stock movements remained mixed across major ports. Dhamra inventories increased 23.9% w-o-w to 0.75 mnt, while Mangalore rose 18.2% to 0.45 mnt and Tuticorin gained 13.7% to 0.80 mnt. Mundra, the largest stockholding port, increased 8.6% to 1.98 mnt.
In contrast, Gangavaram stocks fell 41.3% to 0.05 mnt, while Magdalla declined 17.2% to 0.50 mnt and Tuna fell 15.8% to 0.23 mnt. Krishnapatnam stocks also declined 12.9% to 1.25 mnt. Vizag stocks fell to zero from 0.17 mnt previously.
The mixed movement suggested that stock changes remained driven by vessel arrivals and cargo evacuation rather than a broad shift in consumption.
Major holders show selective inventory management
Inventory trends among major holders remained uneven. Adani Enterprises’ stocks declined to 4.79 mnt from 4.89 mnt, while Agarwal Coal’s holdings increased to 0.57 mnt from 0.52 mnt. Adani Power also raised stocks to 0.79 mnt from 0.65 mnt, while Tata Power increased to 0.65 mnt from 0.62 mnt.
Ultratech Cement reduced inventories to 0.41 mnt from 0.48 mnt, while Jindal Steel & Power fell to 0.25 mnt from 0.30 mnt. The divergence indicated that buyers continued managing inventories according to individual requirements and supply positions.
Tight supply supports imported coal demand
Thermal coal prices strengthened during the week as Indonesian supply tightened and South African coal offers increased. Indonesian 5,000 GAR prices rose to INR 11,600/t at Kandla and INR 11,500/t at Vizag, while South African RB2 reached INR 13,100/t ex-Paradip.
Domestic supply constraints also remained supportive as monsoon disruptions affected coal dispatches and higher auction realisations increased replacement costs. Firmer sponge iron prices provided additional support to industrial coal demand.
However, elevated imported coal prices and stronger freight kept buyers cautious. With substantial US coal arrivals expected during September-October, improved availability could limit further price escalation. Overall, port inventories were likely to remain range-bound, with stock replenishment depending on vessel arrivals, domestic supply conditions and the pace of post-monsoon demand recovery.
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