The increase in coal stocks can be attributed to the rise in coal demand due to summer
Essar Power stocks rise by 36%%, reaching 0.30 mnt
Thermal coal stocks across 21 Indian ports increased by w-o-w on 25 March, 2024, according to BigMint data. During week 12 of 2024, thermal coal stocks at Indian ports stood at 14.14 million tonnes (mnt) compared to 13.70 mnt in week 11.
The increase in coal stocks at Indian ports can be attributed to the rising demand for coal in India, especially with the upcoming summer season, particularly from the latter half of March. This surge in demand is driven by heightened requirements from power plants. Consequently, there is an accumulation of coal stocks at ports.
Rashmi Group witnessed surge in coal stocks by nearly 22% at Dhamra port during week 12 of calendar year 2024 (CY24), reaching 0.39 mnt. Adani Enterprise stocks increased by 32% w-o-w, reaching 0.42 mnt at Mundra port. Essar power coal stocks at Magdalla surged by 36% w-o-w to 0.30 mnt.
At Paradip, Tata Steel stocks rose by 7%, reaching 0.46 mnt. At Tuticorin, Tamil Nadu newsprint stocks rose by 7% to 0.46 mnt during the reviewed week.
Dhamra port recorded coal stocks remain almost stable w-o-w, with stocks reaching 1.59 mnt, compared to 1.57 mnt last week. Coal stocks at Tuticorin port increased by 2% w-o-w to 1.25 mnt. Thermal coal stocks at key ports like Mundra (1.15 mnt) and Krishnapatnam (1.22 mnt) experienced 13% and 10% rise w-o-w. At Dahej (0.96 mnt), stocks increased by 8% during the reviewed week.
Adani Enterprise reported total stocks of 4.71 mnt, up by 6% w-o-w. Adani Power reported total stocks at 1.35 mnt, down by 3% w-o-w. Agrawal Coal (up by 5%) and Tata Steel (up by 7%) had stocks of 0.71 mnt and 0.47 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 April, once the summer is fully underway. This week has witnessed a surge in demand for South African coal from India. Additionally, as Indonesia’s rainy season approaches its end, it is causing an easing of supply constraints, which could further bolster the rise in coal stocks at ports.