Thermal coal stocks at Mundra Port recorded a whopping 142% rise to 1.7 million tonnes (mnt) during 10-14 April, 2022, compared to the period 13-17 February, 2022, as per CoalMint’s data.
During this two-month period, coal inventory of Adani Power was the highest, rising by a whopping 512% to 0.8 mnt, as a sharp rise in power demand forced utilities to secure supplies.
With peak summer approaching and the demand-supply gap in coal at power plants widening, Adani Power is in discussions with states for supplementary power purchase agreements (PPAs).
The country’s power consumption has already surged by 11% y-o-y to 4.41 billion units (BU) in the first two weeks of April 2022 thereby adding more pressure on the coal-fired plants, data from Power System Operation Corporation (POSOCO) showed.
Thermal coal stock at Kandla Port also recorded a 40% rise in the last two months as inventory of Agarwal Coal rose to 0.2 mnt, while inventory of Friends Impex were at 0.3 mn t among others.
At Navlakhi and Krishnapatnam ports, coal stock of major importers, including Adani Enterprise, Green Gold, and JSW Steel, showed a modest rise.
Highest receivers at Mundra Port
*Quantity in mnt
As per CoalMint’s data, coal stock of Adani Enterprise also rose sharply by 126% to 0.6 mnt, while Coastal Gujarat Power Ltd and Tata Power also brought in vessels, leading to a slight 4% rise in inventory levels at Mundra Port.
Inventory of Hindustan Zinc and Shri Cement, on the other hand, fell sharply amid limited vessel arrival surrounding escalated global prices.
Majority of steel and cement-making units in the country continue to run operations at minimum capacity, reeling under the burden of higher raw material prices and weak domestic demand.
Overall thermal coal stock trend
With a sharp rise in the country’s coal imports in March, coal stock has risen sharply across major ports.
During 13-17 April, India’s overall coal stock were at 13 mnt, CoalMint’s data showed.
The majority of these shipments were made by traders such as Agarwal Coal (0.9 mnt), and Siwss Singapore (0.3 mnt), while end-users, including Tata Steel (0.5 mn t), JSW Steel, Essar Power, and Ultratech Cement, have 0.3 mn t each.
Vessels with coals booked at higher prices made their way to ports in recent weeks. But higher port-side offers led to lesser trade, resulting in higher stock accumulation at ports.
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