Coal Inventory Pile-up on Indian Ports

Coal stock at Indian ports has reached to 13.6 MnT – highest weekly stock during FY15. The inventory level upticks by 4% against previous week.

SteelMint analyzed that at present state of affairs Indian ports’ inventory level piled up to its highest level since last seven months of FY15. A large quantity of about 3.4 MnT is stocked at Paradip port and about 2 MnT at Kandla port. India’s major ports have stocked about 2.3 MnT Steel grade coal, which shows a marginal fall against previous week. Non-coking coal inventory has increased by 8% to about 11.4 MnT compared to preceding week.

It is noted that coal stock level at ports has raised since last few consecutive weeks on the grounds of slow demand in the domestic market and lack of rakes availability.

A Chhattisgarh based steel manufacturer stated, “Falling steel demand and rising production cost have forced steel manufacturers to reduce production. Reduced coal consumption and lack of rakes availability for coal movements have increased the stock level at ports.”

Currently, international coal market is bearish despite slow demand and down prices. Coal suppliers are holding their bookings with a positive hope that market will strengthen in coming months. Indonesian 4200 GAR is offered at around USD 47-48/MT CFR India on panamax vessel at East Coast ports but Indian buyers are negotiating for below USD 47/MT level.

The key ports are Dahej, Mormugao, New Mangalore, Hazira, Kandla, Bhavnagar, Tuticorin, Magdalla, Pipavav, Muldwarka, Gangavaram, Haldia, Krishnapatnam, Kakinada, Paradip and Vizag.