India: Thermal coal stocks at ports fall 2% w-o-w despite gains at select ports

• • Drop in stocks reflects steady cargo evacuation

• • Inventory rises at Magdalla, Karaikal, Dahej

India’s thermal coal inventories at major ports declined 1.6% w-o-w to 14.83 million tonnes (mnt) in Week 26, compared with 15.07 mnt in the previous week. The decline reflected steady cargo evacuation by power plants and industrial consumers. However, inventories remained at comfortable levels, while fresh vessel arrivals at a few ports helped offset part of the overall drawdown.

Port-wise inventories decline:

Thermal coal inventories fell across most major ports during the week, reflecting continued dispatches to end-users. Dhamra recorded the steepest decline, with stocks falling 13.1% w-o-w to 0.73 mnt, followed by Tuticorin, where inventories dropped 9.8% to 0.74 mnt. Stocks also declined at Navlakhi by 4.9%, Kandla by 4.8%, Mundra by 4.7%, Paradip by 2.1%, Vizag by 1.9%, and Hazira by 0.4%.

Despite the weekly decline, Hazira continued to hold the largest inventory at 2.52 mnt, followed by Mundra with 1.62 mnt, Paradip with 1.40 mnt, and Kandla with 1.39 mnt, indicating that imported coal availability remained comfortable at the country’s major handling ports.

Select ports record higher stocks:

While overall inventories declined, a few ports recorded higher stock levels during the week. Karaikal registered the largest increase, with inventories rising 6.3% to 0.51 mnt. Magdalla followed with a 4.5% increase to 1.16 mnt, while Dahej reported a 2.1% rise to 0.96 mnt. Inventories at Mangalore remained unchanged at 0.52 mnt.

The increase at these ports indicates that fresh import cargoes arrived during the week, while cargo evacuation was comparatively slower than at other major ports.

Importer-wise trends:

Inventory holdings remained concentrated among a few large importers during Week 26. Adani Enterprises continued to account for the largest share, maintaining 3.52 mnt of thermal coal inventories, well ahead of ArcelorMittal at 1.22 mnt and Adani Power at 0.90 mnt. Mid-sized inventory holders included Agarwal Coal, JSW Minerals, and Aditya Birla, each holding 0.43-0.62 mnt, while Tata Steel, Tata International, NTPL, JSW Steel, Mohit Minerals, and Jindal Steel and Power maintained comparatively lower inventory levels ranging within 0.21-0.40 mnt. The distribution suggests that imported coal stocks remain largely concentrated with major trading houses, power producers, and steelmakers, reflecting continued need-based procurement amid comfortable domestic coal availability.

Market dynamics:

The overall fall in port inventories shows that coal dispatches were slightly higher than fresh arrivals during the week. At the same time, stock increases at a few ports indicate that import arrivals remained steady. Inventory levels at major ports continue to be comfortable, ensuring sufficient coal availability for both the power and industrial sectors.

Outlook:

Portside thermal coal stocks are expected to remain comfortable in the coming weeks, supported by regular import arrivals and stable domestic coal supplies. Inventory levels will depend on the pace of monsoon-related cargo movement, port evacuations and demand from power plants and industrial consumers. If rainfall increases and electricity demand eases, inventories may stabilise. However, steady industrial demand and higher coal consumption could keep stocks under pressure at some major ports.