- Coal stocks at Vizag Port up 41% w-o-w
- Decline in pre-monsoon restocking demand
Thermal coal stocks across 21 Indian ports remained stable w-o-w on 3 June 2024, according to BigMint data. During week 22 of CY24, thermal coal stocks at Indian ports stood at 16.23 million tonnes (mnt) compared to 16.27 mnt in week 21.
This drop in coal stocks at ports can be attributed to the decrease in restocking demand, which comes to an end with the approach of monsoon in some parts of India. The expected drop in temperatures is likely to result in lower power demand and, consequently, lower coal stocks.
Jindal Steel and Power witnessed an upward trend in its coal stocks at Vizag Port during week 22 at 0.38 mnt. Stocks held by Tata Steel decreased w-o-w to 0.42 mnt at Paradip Port. However, Adani Enterprises’ stocks at Dhamra Port increased by almost 28% w-o-w to 0.48 mnt.
At Tuna Port, JSW Mineral’s stocks surged 49% in week 22 to 0.19 mnt. At Kandla Port, Ultratech cement coal stocks decreased to 0.15 mnt.
Magdalla recorded an 15% increase w-o-w in coal stocks, with inventories touching 1.81 mnt in week 22, compared to 1.57 mnt in week 21. Coal stocks at Vizag Port surged 41% w-o-w to 1.37 mnt. Thermal coal stocks at key ports like Tuticorin (1.00 mnt) and Mundra (0.95 mnt) experienced an 8% and 5% drop, respectively. At Mangalore, stocks stood at 0.90 mnt, an increase of 12% w-o-w.
Adani Enterprises’ stocks remained almost stable w-o-w at 5.46 mnt in week 22, from 5.42 in week 21 of CY’24. Agrawal Coal reported total stocks at 0.98 mnt, up 4% w-o-w. Jindal Steel & Power’s stocks increased by 11% to 0.89 mnt. Mohit Minerals’ coal stocks rose by 18% w-o-w to 0.52 mnt.
Outlook
In the upcoming weeks, India’s coal stocks at ports may decrease as restocking concludes with the onset of rainfall in some regions, potentially causing operational constraints at ports. Additionally, the reduction in temperatures across various parts of India is expected to lower cooling demand, hence reducing imports and coal stocks at ports.