- Port stocks dip as restocking ends
- As monsoon approaches, stocks might fall further
Thermal coal stocks across 21 Indian ports decreased by 3% w-o-w on 27 May 2024, according to BigMint data. During week 21 of 2024, thermal coal stocks at Indian ports stood at 16.27 million tonnes (mnt) compared to 16.76 mnt in week 20, a decrease of 6%.
This drop in coal stocks can be attributed to the restocking process coming to an end ahead of the monsoons expected to arrive by the first week of June. This is likely to affect imports, and the end of summer signals reduced power demand, further influencing coal stock levels.
Essar Power witnessed an upward trend in its coal stocks at Magdalla Port during week 21, at 0.55 mnt. Stocks held by Adani Enterprises increased w-o-w to 0.15 mnt at Krishnapatnam Port. However, Swiss Singapore’s stocks at Tuna Port decreased by almost 16% w-o-w to 0.14 mnt.
At Jamnagar Port, Tata Chemical’s stocks dropped 6% in week 21 to 0.22 mnt. At Dharma Port, Adani Power’s coal stocks decreased to 0.11 mnt.
Krishnapatnam Port recorded an 18% w-o-w increase in coal stocks, with inventories touching 1.72 mnt in week 21, compared to 1.46 mnt in week 20. Coal stocks at Magdalla Port increased 20% w-o-w to 1.57 mnt. Thermal coal stocks at key ports like Tuticorin (1.09 mnt) and Mundra (1.01 mnt) experienced a 7% and 27% drop, respectively. At Hazira, Adani’s stocks at 1.20 mnt increased 8% during the week under review.
Adani Enterprises’ stocks remained almost stable w-o-w at 5.42 mnt in week 21, down from 5.49 in week 20 of CY’24. Agrawal Coal reported total stocks at 0.94 mnt, up by 10% w-o-w. Jindal Steel & Power’s stocks increased by 18% to 0.80 mnt. Tata International’s coal stocks rose by 12% w-o-w to 0.54 mnt.
Outlook
In the coming week, coal stocks at ports might drop further as restocking comes to an end with the approach of monsoon in the first week of June which may hinder port operations. The rapid drop in temperatures is likely to result in lower power demand and coal stocks.