In the world of commodities, few resources are as crucial as coal, and India is no exception to this dependence. Recent data has revealed an intriguing development in the Indian coal sector. As of 9 September 2023, thermal coal stocks at 21 major Indian ports have risen by a significant 4% compared to the previous week. This sudden uptick in coal stocks is sending ripples through the energy and mining sectors.

Numbers Speak: A 4% Weekly Surge

Week 36 of 2023 witnessed thermal coal stocks at Indian ports reaching a notable 13.23 million tons (million tons), a substantial increase from the 12.73 million tons reported in the previous week. This surge amounts to a 4% week-on-week growth. While this percentage may seem modest, the scale of the coal industry makes this uptick significant.

CIL Takes The Lead

One of the key players in India’s coal sector, the state-run miner Coal India Limited (CIL), has played a pivotal role in driving this growth. In August, CIL reported an impressive 13% year-on-year increase in coal production. Production figures soared to 52.3 million tons, up from 46.2 million tons in August 2022. This remarkable performance by CIL reflects the efforts to bolster India’s energy security and reduce coal imports.

Port-Specific Developments

Navlakhi Port: It stands out with a staggering 30% week-on-week rise, witnessing coal stocks reach 1.03 million tons in week 36, compared to 0.79 million tons in the previous week. This substantial increase could be attributed to various factors, including increased demand or more efficient logistics.
Tuticorin Port: It experienced a commendable 14% rise in coal stocks during this period. This uptick hints at the port’s role in facilitating the transportation and storage of thermal coal.
Hazira Port: It saw a notable 3% week-on-week increase, as coal stocks reached 0.95 million tons in week 36, compared to the previous week’s 0.92 million tons. This modest rise may be attributed to factors such as steady demand or improved logistical operations.
Mundra Port: It saw a modest 1% week-on-week increase, as coal stocks reached 0.76 million tons in week 36, compared to the previous week’s 0.75 million tons. This slight uptick may be influenced by factors like stable demand or continued efficient logistics.

Stock Holdings Key Players

Adani Enterprises: Despite witnessing a 6% week-on-week decrease, still holds the highest stocks at 3.43 Million tons.
Adani Power: Follows closely with total stocks of 1.48 million tons.
Agarwal Coal: With a 4% week-on-week decrease, it stands at 0.68 million tons.
Tata International: It has total stocks of 0.56 million tons, marking a 3% week-on-week decrease.

OFB’s Insight

The recent 4% surge in thermal coal stocks at Indian ports reveals a dynamic coal industry that responds to various factors, including production growth, port efficiency, and market demand. While some ports experienced substantial increases, others saw declines, underscoring the need for a holistic view of the coal sector.