Thermal coal stocks across 21 Indian ports decreased by 2% w-o-w on 6 April 2024, according to BigMint data. During week 18 of 2024, thermal coal stocks at Indian ports stood at 15.34 million tonnes (mnt) compared to 15.70 mnt in week 17.
Thermal coal stocks at ports dropped by 2% in Week 18 of CY’24. This decline can be attributed to the volatility in Indonesia’s thermal coal prices, prompting buyers to adopt a wait-and-watch approach and reduce imports, particularly as they have ample inventories.
Also, increase in India’s domestic coal production is another factor behind the decrease in imports. State-run miner Coal India Ltd (CIL) continued its robust performance in terms of coal production in April. CIL’s production rose by 7% y-o-y to 61.8 mnt in April as against 57.6 mnt in April 2023.
Rashmi group witnessed a downtrend in coal stocks by 12% at Dhamra port during week 18 of CY’24, reaching 0.47 mnt. Tata International’s stocks increased by nearly 9% w-o-w, reaching 0.21 mnt at Tuticorin port. Adani Enterprise coal stocks at Mundra dropped 16%w-o-w to 0.37 mnt.
At Paradip, Tata Steel stocks increased by 2% in Week 18 of CY’24 reaching at 0.26 mnt. At Magdalla port, Mohit Minerals’ coal stocks dropped by 2.2% to 0.14 mnt during the week under review.
Port-wise thermal coal stock
Krishnapatnam port recorded coal stocks declining by 17% w-o-w, with inventories reaching 1.60 mnt in week 18, compared to 1.94 mnt in week 17. Coal stocks at Dhamra port dropped by 19% w-o-w to 1.38 mnt. Thermal coal stocks at key ports like Magdalla (1.19 mnt) and Vizag (0.99 mnt) experienced 6% and 50% increase w-o-w. At Mundra (1.17 mnt), stocks decreased by 18% during the reviewed week.
Company-wise stocks
Adani Enterprises reported total stock levels decreasing by 5% w-o-w to 5.69 mnt in week 18, down from 6.01 in week 17 of CY24. Adani Power reported total stocks at 0.53 mnt, remained almost stable w-o-w. Agrawal coal stocks dropped by 2% to 0.68 mnt. Rashmi group stocks dropped by 11% w-o-w to 0.47 mnt.
Outlook
Coal stocks are expected to increase in the coming week due to the anticipated surge in demand for thermal coal in India. This period signifies the beginning of stocking by buyers for the upcoming rainy season, thereby leading to a rise in imports and subsequently boosting thermal coal stocks at ports.
Additionally, the Indian government has extended the mandate for imported coal-based power plants to operate at full capacity until 15 October 2024, foreseeing high electricity demand during summer and heatwaves. As a result, this extension will lead to an increase in coal stocks at ports.