- Port stocks fall as evacuations outpace arrivals
- Major importers reduce inventory holdings
India’s thermal coal inventories at major ports declined by about 15% w-o-w to 11.79 mnt in August 9, from 13.86 mnt in the previous week, as cargo evacuations exceeded fresh arrivals across most major ports. The drawdown indicates stronger movement of existing imported cargo, although it does not necessarily signal a broad recovery in import demand. Buyers continued to rely on domestic coal and procure imports selectively, keeping fresh booking activity subdued.
Major ports see broad inventory drawdown
Most major import hubs recorded lower inventories during the week, pointing to stronger evacuation and limited replenishment. Paradip stocks declined 8.2% w-o-w to 1.30 mnt, while Hazira fell 3.1% to 2.40 mnt. Kandla and Dahej declined 5.7% and 3.8%, respectively, while Mundra stocks fell 8% to 1.00 mnt.
Magdalla and Tuticorin also recorded declines of 10.5% and 7.1%, respectively. Mangalore saw a sharper 11.7% reduction to 0.53 mnt.
The broad-based decline suggests that existing cargoes continued moving to consumers despite limited fresh import buying. However, some ports recorded higher stocks, including Dhamra, where inventories increased 12.3% to 0.61 mnt, and Navlakhi, which rose 4.5% to 0.63 mnt. This indicates that cargo movement remained uneven across India’s import network.
Krishnapatnam stocks plunge
The sharpest movement was recorded at Krishnapatnam, where inventories fell 87.7% w-o-w to 0.22 mnt from 1.82 mnt. The steep decline significantly contributed to the overall reduction in port inventories and indicates substantial cargo evacuation during the week.
Karaikal stocks, in contrast, more than doubled to 0.13 mnt, while Haldia, Tuna and Vizag also recorded increases. These gains, however, were insufficient to offset the larger drawdowns across major inventory centres.
The contrasting movements suggest that the decline in total stocks was driven more by cargo redistribution and evacuation than by a uniform tightening of imported coal availability across India.
Major inventory holders reduce stocks
Inventory holdings among key importers also declined. Adani Enterprises’ stocks fell 34% w-o-w to around 3.28 mnt from 4.97 mnt, representing one of the largest absolute reductions among major holders. Agarwal Coal’s inventory declined 6.1% to around 0.72 mnt from 0.77 mnt.
In contrast, ArcelorMittal’s holdings remained broadly stable at around 1.25 mnt, while UltraTech Cement’s inventory increased to around 0.52 mnt from 0.48 mnt.
The movement suggests that inventory reduction was concentrated among some of the largest trading and importing entities, while individual consumers continued to follow different procurement strategies depending on consumption and replenishment requirements.
Domestic supply limits import urgency
Despite the significant port inventory drawdown, the market does not currently indicate an outright shortage of imported coal. Comfortable domestic coal availability and regular domestic supplies have continued to reduce the urgency for consumers to rebuild imported inventories.
Import buying therefore remained largely requirement-based, particularly among steel, sponge iron and other industrial consumers facing weak downstream demand during the monsoon. Buyers have remained cautious about fresh cargo commitments while monitoring international prices, freight and domestic coal availability.
The lower port inventories could eventually increase replenishment requirements if industrial consumption strengthens or domestic coal availability tightens further. For now, however, the sharp weekly drawdown appears to reflect stronger evacuation of existing cargoes rather than a broad-based revival in India’s import demand.
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