India: Thermal coal stocks at Gangavaram Port falls 4% w-o-w on limited vessel arrival

Thermal coal stock at Gangavaram Port for week 50 (5-9 Dec’21) fell by 4% w-o-w to 1.2 mn t, CoalMint’s stock data reveals. On a m-o-m basis, the same has declined by 19%.

Stock level at Gangavaram Port has been on a downtrend starting Oct’21 amid limited vessel arrivals due to significant volatility in imported coal prices. The port receives the largest volumes of coal from South Africa followed by Indonesia.

Also, on the supply side, lower cargo availability from the country is seen as a major factor behind the drop in vessel arrivals. Since the past few weeks, coal stocks at RBCT port have reduced to levels of 2 mn t against an average of 5 mn t amidst the several logistic disruptions at Transnet, South Africa’s national rail operator.

As per CoalMint’s vessel line-up data, a total of 1.3 mn t of thermal coal vessels arrived from various origins at Indian ports between 5-9 Dec’21. Out of this, South African coal vessels were at 0.1 mn t, while Indonesian vessels totalled 0.7 mn t.

An analysis of party-wise data reveals, Adani Enterprise has the highest stock at 0.66 mn t at Gangavaram Port currently, followed by the combined stock of BSP, Indian Coke and Swiss Singapore at 0.50 mn t, down 9% w-o-w.

Total thermal coal stock at Indian ports unchanged

The total thermal coal stock at India ports, however, remained largely unchanged at 13.7 mn t on a w-o-w basis as overall vessel arrival remained weak since buyers kept to the sidelines. That apart, portside trading activity also remained weak.

Amid the improving domestic coal supply scenario, several end-users delayed their imported coal purchases.

Mangalore, Kandla and Paradip ports have also shown a w-o-w decline in thermal coal stock amid lower vessel arrival. The only port that has recorded a rise is Vizag with a 5% w-o-w increase.

*Quantity in mn t

Party-wise thermal coal stock

Continuing the trend, Adani Enterprise, followed by Adani Power, has the highest quantity of thermal coal at various Indian ports. However, on a w-o-w basis, portside stock of both parties declined by 7%.

Interestingly, thermal coal stock of Essar Steel rose the most by 21% w-o-w to 0.73 mn t at Magdalla Port in week 50.

*Quantity in mn t

Outlook

Amid volatile thermal coal prices, vessel arrival from various origins is expected to remain subdued which may put further pressure on the existing portside thermal coal stock in the coming weeks.