- Stocks surge amid higher power demand, pre-monsoon buying
- Adani Enterprises inventory more than double at Tuticorin Port
Thermal coal stocks across 21 Indian ports increased by 3% w-o-w on 13 May 2024, according to BigMint data. During week 19 of 2024, thermal coal stocks at Indian ports stood at 15.84 million tonnes (mnt) compared to 15.34 mnt in week 18, up 3%.
This increase can be attributed to a rise in demand for non-coking coal due to the full onset of summer, as well as the initiation of pre-monsoon stocking by various end-users.
Kolkata-based Rashmi Group witnessed an upward trend in its coal stocks at Dhamra Port during week 19, reaching 0.45 mnt. Adani Enterprises’ stocks increased more than twofold w-o-w, reaching 0.1 mnt at Tuticorin Port. However, Adani Power’s coal stocks at Mundra dropped 13% w-o-w to 0.34 mnt.
At Krishnapatnam, Ultratech Cement’s stocks dropped marginally in week 19 to 0.05 mnt. At Magdalla Port, Agarwal Coal’s stocks surged 14% to 0.22 mnt during the week under review.
Port-wise thermal coal stocks
Krishnapatnam Port recorded a 6% w-o-w decline in its coal stocks, with inventories touching 1.51 mnt in week 19, compared to 1.60 mnt in week 18. Coal stocks at Dhamra Port increased 2% w-o-w to 1.41 mnt. Thermal coal stocks at key ports like Magdalla (1.24 mnt) and Mundra (1.23 mnt) experienced 4% and 6% increases respectively, w-o-w. At Vizag (1.10 mnt), stocks increased 11% during the reviewed week.
Company-wise stocks
Adani Enterprises’ level remained stable w-o-w to 5.62 mnt in week 19, down from 5.69 in week 18 of CY24. Agrawal coal reported total stocks at 0.83 mnt, increased significantly by 21% w-o-w. Mohit minerals stocks increased by 13% to 0.48 mnt. JSW steel coal stocks follow an upward trend by 18% w-o-w to 0.40 mnt.
Outlook
In the weeks, a rise in coal stocks is expected at Indian ports, fuelled by the growing demand for thermal coal for two reasons. One, this period marks the onset of stocking by buyers against the backdrop of the approaching rainy season. Two, heightened temperatures are also driving up power demand nationwide, further contributing to the increase in coal stocks.