India: Thermal coal stock at Mangalore Port drops 26% on lack of new vessel arrival

CoalMint’s stock report reveals that thermal coal stocks at Mangalore Port have declined to 0.25 million tonnes (mn t), against 0.33 mn t seen in week 32 (1-5 Aug’21) due to a steep decline in new vessel arrival at the port for both importers and end-users.

In addition to this, this decline at ports can be attributed to reduced inventories of key importers. There has been a 38% w-o-w fall in thermal coal stock of JSW Steel to 89,400 t. That apart, Agarwal Coal, and Balaji Malts have seen a 16% fall to 50,500 t and 46,600 t respectively. Inventory of India Coke and Power also fell 22% w-o-w to 31,800 t among others.

The sharp decline in inventory of importers at Mangalore Port and the lack of arrival of any major vessels at the port have already pulled up the portside coal prices higher compared to the rise seen in the case of ports on the eastern coast.

Total thermal coal stock at major Indian ports also recorded a decline of 28% w-o-w to 15.1 mn t during week 32.

*Quantity in mn t

 Adani Enterprise’s stock declines 14%

Thermal coal stock of key importer Adani Enterprise fell to 2.83 mn t, down 14% w-o-w with the major portion of inventory held at Krishnapatnam (1.07 mn t), Gangavaram (0.93 mn t) and Mundra (0.33 mn t) ports.

This was followed by Adani Power with 2.09 mn t, down 13% w-o-w.

Following this was Agarwal Coal and Tata Steel as they saw an inventory decline of 8% and 76% at 0.71 mn t and 0.26 mn t respectively.

However, thermal coal inventory of Essar Steel and Hindustran Zinc rose to 0.79 mn t and 0.32 mn t, up 40% and 45% respectively.

Outlook

With limited number of vessels arriving at the ports due to escalated prices of imported coal, thermal coal stock at Indian ports is expected to fall further in the upcoming weeks.