India: Portside thermal coal stocks increase 5% w-o-w

Thermal coal stocks across 21 Indian ports increased by 5% w-o-w on 29 April, 2024, according to BigMint data. During week 17 of 2024, thermal coal stocks at Indian ports stood at 15.70 million tonnes (mnt) compared to 14.99 mnt in week 16.

Thermal coal stocks increased in week 17 of the calendar year 2024 (CY’24). This increase in coal stocks at ports can be attributed to the expected surge in demand for thermal coal in India, particularly as May advances and the summer heat escalates.

The Indian government has extended the mandate for imported coal-based power plants to operate at full capacity until 15 October, 2024, anticipating high electricity demand during summer and heatwaves. This will result in increased imports and, consequently, coal stocks at ports.

Adani Enterprises witnessed an uptick in coal stocks by 8% at Dhamra port during week 17 of CY’24, reaching 0.53 mnt. Tata International’s stocks surged nearly 27% w-o-w, reaching 0.19 mnt at Tuticorin port. Hindalco Industries’ coal stocks at Dahej dropped 4%w-o-w to 0.05 mnt.

At Paradip, JSPL’s stocks increased significantly reaching 0.19 mnt. At Magdalla port, Mohit Minerals’ coal stocks rose by 50% to 0.14 mnt during the week under review.

Mundra port recorded coal stocks declining by 4% w-o-w, with inventories reaching 1.42 mnt in week 17, compared to 1.47 mnt in week 16. Coal stocks at Dhamra port increased by 11% w-o-w to 1.71 mnt. Thermal coal stocks at key ports like Magdalla (1.12 mnt) and Navalakhi (0.73 mnt) experienced 14% and 2% increase w-o-w. At Krishnapatnam (0.1.94 mnt), stocks increased by 10% during the reviewed week.

Adani Enterprises reported total stock levels increasing by 24% w-o-w to 6.01 mnt in week 17, down from 4.83 in week 16 of CY24. Adani Power reported total stocks at 0.54 mnt, down by 68% w-o-w. JSW Steel coal stocks dropped by 14% to 0.40 mnt. Agarwal Coal stocks dropped by 6% w-o-w to 0.70 mnt.

Outlook

Coal stocks are anticipated to rise in the coming week due to the expected surge in demand for thermal coal in India. This period marks the initiation of stocking by buyers for the upcoming rainy season, thus leading to an increase in imports and subsequently boosting thermal coal stocks at ports.

Moreover, the Indian government has extended the mandate for imported coal-based power plants to operate at full capacity until 15 October 2024 in anticipation of high electricity demand during summer and heatwaves. Consequently, this extension will result in increased coal stocks at ports.