- Cautious buying behaviour impacts stock levels
- Robust domestic production hits portside inventory
Thermal coal stocks across 23 Indian ports remained largely stable, falling a slight 1.1% w-o-w, on 17 June 2024, according to BigMint data. During week 24 of calendar year 2024 (CY’24), thermal coal stocks at Indian ports stood at 16.05 million tonnes (mnt) compared to 16.22 mnt in week 23.
This drop can be attributed to disparity between bid-offer levels in the Asian thermal coal market which indicates cautious buying behaviour among Indian buyers. Despite inquiries, buyers are hesitant to lock in purchases at current offers, which can slow down the depletion of port stocks.
Meanwhile, Both China and India have been focusing on boosting domestic coal production. In India specifically, efforts to enhance domestic production have reduced the reliance on imported coal, thereby impacting the flow of the fuel through ports.
Company-wise break-up
Adani enterprises witnessed an upward trend in its coal stocks during week 24, at 5.37 mnt. Stocks held by Agarwal coal decreased w-o-w by 8% to 0.95 mnt. However, coal stock of JSW Steel increased by 33% w-o-w to 0.53 mnt in week 24.*
Port-wise break-up
Paradip Port’s thermal stocks decreased by 2% w-o-w to 1.27 mnt, while Dhamra Port dropped 19% w-o-w to 0.80 mnt. Mundra Port experienced an increase of 32% w-o-w to 1.44 mnt.*
Outlook
Thermal coal stocks at Indian ports are expected to decline in the upcoming week due to the approaching monsoon and ongoing efforts to bolster domestic coal production. However, enhanced energy infrastructure activities, post-the general elections, may invite imports into the country.
*correction