Thermal coal stocks at key Indian ports fell 9% w-o-w to 10 mnt during 13-17 Feb’22, CoalMint data showed. Portside stocks remained under pressure due to limited vessel arrival amidst resilient global thermal coal prices.
This is the eighth consecutive week of decline since the beginning of this year. Inventory at Krishnapatnam Port saw the highest decline of 29% m-o-m to 0.7 mnt amid lowering stock of Adani Enterprise, JSW Cement, JSW Steel and others.
The fall in stock across ports came amidst limited vessel arrival from South Africa, Indonesia, and Australia as supply disruptions at these major countries have affected shipments.
Elevated coal prices due to higher demand from Europe and Japan also resulted in limited booking by end-users.
The political tension between Russia and Ukraine pushed up gas prices, compelling its largest buyers like Europe and Japan to switch to coal for power generation.
Coal stock at Kandla and Gangavaram ports further declined to a large extent. Although shipments from Indonesia are gaining momentum in the coming days, the same from South Africa remains under pressure amid constrained supply at RBCT Port.
An almost negligible amount of ready stock at ports compelled the sponge iron manufacturers to make advance booking of cargoes.
Party-wise thermal coal stock
Besides having the highest quantity of thermal coal among all receivers at Dhamra, Gangavaram, Krishnapatnam and other ports, stock of Adani Enterprise fell by 16% w-o-w to 1.99 mnt.
Stocks of other major importers including Adani Power, Agarwal Coal, Essar Steel, and Tata Steel also fell on a w-o-w basis.
*Quantity in mnt
Outlook
Amid volatile thermal coal sentiments, vessel arrivals from various origins are expected to remain slow which may put further pressure on the existing portside thermal coal inventory in the coming weeks.
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