In the dynamic landscape of India’s coal industry, the recent data on thermal coal stocks at major Indian ports, as of September 2, 2023, is causing ripples of interest and concern. Findings reveal a 3% week-on-week drop in thermal coal stocks, with the figure standing at 12.75 million tons, compared to the previous week’s 13.16 million tons. This article delves into the details of this development, examines its implications, and provides valuable insights for stakeholders in the coal sector.

Coal India Ltd’s Impressive Production Surge

In the realm of coal production, state-run giant Coal India Ltd (CIL) delivered a standout performance in July. The company witnessed an astounding 13% year-on-year growth in coal production, reaching a staggering 52.5 million tons, up from 46.4 million tons in August 2022. This significant surge in production has not only fueled the nation’s energy needs but also contributed to the overall reduction in coal stocks at ports.

Port-Specific Highlights

Tuna Port: Witnessing a remarkable uptick in coal stocks during the reviewed week. Adani, a prominent player in the coal sector, recorded a twofold increase in stocks, reflecting a robust demand for coal at this location. This growth serves as an indicator of regional demand dynamics.
Tuticorin Port: India Cement registered a substantial surge in coal stocks, echoing the trend observed at Tuna Port. The doubling of coal stocks underscores the thriving demand for coal in the region, likely driven by industrial and construction activities.
Gangavaram Port: Reporting a significant surge in coal stocks, primarily attributed to Ultratech Cement’s operations. This positive trend signifies an increase in coal consumption by the cement industry, a key consumer of thermal coal.
Krishnapatnam Port: Conversely, Experienced a stark decline in coal stocks, particularly those belonging to Bharathi Cements, which plummeted by 57%. This decline may be attributed to a slowdown in construction and cement production activities in the region.
Dhamra and Hazira Ports: Dhamra Port led the charts with the steepest rise in coal stocks, surging by 10% in week 35 compared to the previous week. Hazira Port also reported a substantial 5% increase in stocks, indicating heightened coal demand at these locations.
Paradip, Krishnapatnam, And Dahej Ports: In contrast, several key ports saw declines in thermal coal stocks. Paradip port, with 1.14 million tons, witnessed an 8% week-on-week decrease. Krishnapatnam and Dahej ports saw their stocks fall by 3% and 6%, respectively, indicating reduced coal imports or consumption at these strategic locations.
Mundra Port: Experiencing a notable decline in thermal coal stocks, plummeting by 15% in week 35, marking a sharp contrast from the previous week’s figures. This substantial drop could potentially impact local industries reliant on coal.

Key Players In Port Coal Stocks

The Indian coal sector is home to several key players with substantial coal stocks at ports. Adani Enterprises maintains the highest stocks at 3.66 million tons , though it experienced a marginal 3% week-on-week decrease. Adani Power follows closely with total stocks of 1.41 million tons, while Agarwal Coal faced a 12% week-on-week dip, leaving it with 0.73 million tons . Tata, on the other hand, has seen a remarkable surge of 41% week-on-week, culminating in total stocks of 0.6 million tons .

OFB’s Insight

The recent data on thermal coal stocks at Indian ports provides valuable insights into the nation’s coal industry. Coal India Ltd’s remarkable production growth and the port-specific fluctuations in stocks shed light on the dynamic nature of India’s coal sector. Key players like Adani and Tata continue to play pivotal roles in maintaining coal stocks at these ports. While the reasons for these fluctuations are multifaceted, they serve as crucial indicators for industries reliant on thermal coal. As India’s industrial landscape evolves, these trends will likely continue to shape the nation’s energy and infrastructure sectors.