Thermal coal stocks at Indian ports decrease due to tepid demand
Tata International stocks plunged by 44% to 0.11 mnt
Thermal coal stocks across 21 Indian ports dropped by 2% w-o-w on 4 March, 2024, according to BigMint data. During week 9 of 2024, thermal coal stocks at Indian ports stood at 13.22 million tonnes (mnt) compared to 13.47 mnt in week 8, reflecting an increase of 2% w-o-w.
The decline in demand can be attributed to tepid interest from India, stemming from a surge in domestic thermal coal production. Moreover, the decreased demand for Indonesian coal in India can be linked to heightened domestic production in India and supply limitations in Indonesia due to rainfall, resulting in diminished exports to India.
Super smelters witnessed drop in coal stocks by 22% at Dhamra port during week 9 of calendar year 2024 (CY24), reaching 0.11 mnt. Adani Power stocks fell by 19% w-o-w, reaching 0.40 mnt at Mundra port.
At Paradip, Tata Steel stocks dropped by 17%, reaching 0.49 mnt. At Tuticorin, Tata International stocks plunged by 44% to 0.11 mnt during the reviewed week.
Dhamra port recorded a rise of 2% w-o-w, with coal stocks reaching 1.43 mnt, compared to 1.41 mnt last week. Coal stocks at Mundra port remained almost stable totalling 1.30 mnt. Thermal coal stocks at key ports like Tuticorin (1.22 mnt) and Paradip (1.17 mnt) experienced 7% and 19% drop w-o-w. At Dahej (0.94 mnt), stocks decreased by 2% during the reviewed week.
Adani Enterprise reported total stocks of 4.30 mnt, up by 5% w-o-w. Adani Power reported total stocks at 1.31 mnt, down by 8% w-o-w. Agrawal Coal (down by 18%) and Tata Steel (up by 17%) had stocks of 0.65 mnt and 0.43 mnt, respectively.
Outlook
Coal stocks are likely to increase in the upcoming week as demand for Indonesian coal from India is anticipated to rise in the latter half of March once summer is fully underway. This week has witnessed a surge in demand for South African coal from India, coupled with improved supply from Indonesia as the rainy season approaches its end, which could additionally bolster the rise in coal stocks at ports.