- Mundra inventories surge on stronger arrivals
- Domestic coal keeps import demand subdued
India’s thermal coal inventories at major ports increased marginally by 1% week-on-week (w-o-w) to 14.25 million tonnes (mnt) in the week ended 19 July, compared with 14.15 mnt in the previous week. The increase was primarily driven by a sharp rise in inventories at Mundra, along with modest stock additions at Hazira, Vizag, Mangalore, Karaikal and Dahej, which more than offset inventory declines at several other ports.
The marginal build-up in inventories suggests that import arrivals remained largely balanced with cargo evacuations, as consumers continued to procure imported coal selectively amid comfortable domestic coal availability and adequate fuel stocks.
Mundra records the sharpest increase
Among the major ports, Mundra recorded the highest weekly increase, with inventories surging 95% w-o-w to 0.76 mnt from 0.39 mnt in week 28, indicating a significant increase in import arrivals and stock replenishment.
Hazira retained its position as India’s largest thermal coal stockholding port, with inventories rising 2% to 2.59 mnt. Vizag also witnessed a notable increase of 18% to 0.40 mnt, while Karaikal and Mangalore recorded gains of 15% and 8%, respectively. Dahej remained broadly stable, with inventories increasing marginally to 1.03 mnt.
Several ports witness inventory drawdown
In contrast, inventories declined across several ports during the week.
Navlakhi registered the sharpest fall, with stocks dropping 17% w-o-w to 0.39 mnt, followed by Tuticorin, where inventories declined 10% to 0.63 mnt. Dhamra and Kandla recorded decreases of 9% and 7%, respectively, while Magdalla fell 2% and Paradip edged down 1%. Inventories at other minor ports collectively declined 5% to 3.32 mnt.
Adani Enterprises remains the largest inventory holder
Adani Enterprises remained the largest holder of non-coking coal inventories at Indian ports in Week 29, with stocks rising 0.8% w-o-w to 5.11 mnt from 5.07 mnt, further consolidating its dominance in the imported coal supply chain.
AM/NS India retained the second position, with inventories increasing 3.4% w-o-w to 1.31 mnt. Agarwal Coal continued to be the largest independent coal trader despite a 4.8% w-o-w decline in stocks, holding 0.74 mnt of non-coking coal at Indian ports.
Among other major inventory holders, NTPL held 0.40 mnt, while Tata Steel maintained 0.37 mnt. Tata International, JSW Steel, JSW Mineral, Mohit Minerals and Aditya Birla each held inventories in the range of 0.25-0.30 mnt.
Meanwhile, Adani Power maintained one of the leanest inventory positions at 0.11 mnt, followed by Jindal Steel & Power with around 0.21 mnt, reflecting continued reliance on requirement-based procurement supported by comfortable domestic coal availability.
Market dynamics
India’s non-coking coal market continued to remain well supplied during the week, supported by regular Coal India dispatches, ample domestic coal availability and the ongoing monsoon. Although thermal coal inventories at major ports increased marginally, the limited rise indicates that import arrivals remained largely in line with cargo evacuations as buyers continued to procure imported coal only to meet immediate operational requirements.
Weak demand from the steel and sponge iron sectors, coupled with subdued industrial activity during the monsoon, continued to limit imported coal purchases. At the same time, domestic coal retained its competitive advantage due to stable pricing, uninterrupted availability and regular Coal India auctions, encouraging consumers to prioritise domestic supplies over imports.
The sharp inventory build-up at Mundra suggests fresh cargo arrivals during the week, while inventory declines at several other ports indicate steady cargo offtake. Going forward, imported thermal coal demand is expected to remain selective until post-monsoon industrial activity improves materially, with domestic coal likely to continue dominating fuel procurement due to its cost competitiveness and reliable availability.
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