India: A Weekly Recap of Thermal Coal Stocks at Indian Ports

In a week marked by dynamic shifts, thermal coal stocks at 21 Indian ports experienced a noteworthy 5% surge, reaching 14.59 million tons by February 21, 2024. This surge in coal stock in India is attributed to increased purchases from Indian end users, particularly for South African-origin coal. The driving forces behind this surge in coal demand are attractive coal prices.

Thermal Coal Port-wise Highlights

• Adani Enterprise at Dhamra Port: Adani Enterprise encountered an 11% dip in coal stocks at Dhamra Port during Week 7, making the existing coal quantiry0.41 million tons.
• Adani Power at Mundra: Conversely, Adani Power witnessed a substantial 45% rise in coal stocks at Mundra, taking the coal quantity to 0.51 million tons, indicative of a robust week for the company.

Gangavaram: Gangavaram port saw mixed fortunes for key players

• NMDC experienced a 14% decline in coal stocks, totalling the current coal value to 0.18 million tons.
• RINL, on the other hand, marked an impressive 61% surge in coal stocks, taking coal value at 0.51 million tons.

Stability and Changes in Coal Stock

While Dhamra Port’s coal stocks remained stable week-over-week at 1.52 million tons, Mundra Port experienced a 5% decrease, totalling the coal stock value to 1.13 million tons. Tuticorin witnessed a 6% drop, with coal stock at 1.41 million tons. Krishnapatnam, however, showed a 19% coal stock surge, taking to current coal value to 0.99 million tons.

OFB’s Insight on Coal Stock Surge

Looking ahead to the next week, people in the coal industry expect more coal. Indian coal buyers are showing more interest in coal from South Africa, and this is a big reason for the expected increase. People find the coal prices attractive, and more cement and steel companies are asking about it. Also, because there are fewer problems with getting coal from Indonesia recently, this adds to the belief that there will be more coal available in the coming week. These positive coal market insights make the thermal coal market look interesting.