With almost four weeks of 2022 gone, thermal coal stocks at major ports continue to remain under pressure, falling 11% m-o-m and 7% w-o-w to 12.2 mnt during 23-27 Jan’22, CoalMint data showed.
Thermal coal stock at Kandla Port has declined the highest by 29% m-o-m to 1.3 mnt amid declining inventory of Agarwal Coal, Ambuja Cement, Balaji Malts and others.
The overall fall in stock across ports has come amidst limited vessel arrival from South Africa, Indonesia, and Australia as supply disruptions at these major countries have affected shipments.
Although the Indonesian government has lifted the ban on its coal exports, cargoes are getting discharged at slower pace amid the new regulations, which has kept supply tight from this country.
Meanwhile, an acute coal shortage at South Africa’s RBCT Port and adverse weather conditions in Australia have also affected shipments from these countries.
Coal stock at Vizag and Gangavaram ports further declined to a great extent amid limited vessel arrivals from South Africa.
An almost negligible amount of ready stock at ports has compelled the sponge iron manufacturers to make advance booking of upcoming cargoes.
Krishnapatnam and Mundra ports, however, have seen a strong rise in coal stock levels during the last month as Adani Enterprise was the highest receiver at these ports.
Party-wise thermal coal stock
Continuing the trend, Adani Enterprise has the highest quantity of thermal coal at Dhamra, Gangavaram, and Krishnapatnam among others. On a m-o-m basis, portside stock of the company has risen by 22%.
Interestingly, thermal coal stock of Ultratech Cement has risen by 25% m-o-m to 0.48 mn t, while that of Essar Steel declined the most – by 12% w-o-w to 0.62 mnt at Magdalla Port as on 27 Jan’22.
*Quantity in mn t
Outlook
Amid volatile thermal coal market sentiments, vessel arrival from various origins is expected to remain subdued which may put further pressure on the existing portside thermal coal inventory in the coming weeks.
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