India's thermal coal port inventories rise marginally amid subdued demand for imports

• Port inventories rise on weak demand, preference for domestic coal
  
  
• All ports witness hike in stocks, Adani holds highest inventory by volume
  
  

India's thermal coal inventories at major ports increased marginally by 1.6% w-o-w to 15.07 million tonnes (mnt) in week 27, compared with 14.83 mnt in the previous week. The rise was primarily driven by slower cargo offtake, as consumers relied on adequate existing inventories and limited fresh purchases to immediate requirements.

Increased domestic coal availability, supported by regular Coal India supplies and the ongoing monsoon continued to reduce dependence on imported cargoes, resulting in stable inventory accumulation at ports.

Mixed inventory movement across ports

Inventory trends remained mixed across major ports, reflecting varying dispatch patterns and cargo arrivals. Hazira, the country's largest thermal coal stockholding port, recorded a 1.2% increase to 2.55 mnt, maintaining its leading position due to consistent cargo receipts and moderate dispatches.

Dahej and Mangalore also registered inventory gains of 8.3% and 9.6%, respectively, indicating fresh cargo arrivals outpacing offtake.

In contrast, Mundra witnessed the sharpest decline, with inventories falling 63% w-o-w to 0.60 mnt, likely due to higher cargo evacuations and lower replenishment during the week. Stocks also declined at Kandla (-15.1%), Vizag (-22.6%), Navlakhi (-19%), Magdalla (-6.9%), Paradip (-4.3%), Dhamra (-5.5%), and Tuticorin (-5.4%), reflecting continued consumer dispatches and limited import arrivals at these locations.

Adani Enterprises holds highest stocks

Adani Enterprises remained the largest holder of thermal coal inventories at Indian ports in week 27 with 5.23 mnt, reflecting its strong import network and supply position. AM/NS India ranked second with 1.23 mnt, while Agarwal Coal (0.83 mnt) was the leading trading house after Adani.

Despite variations across ports, overall stock availability remained comfortable. Inventories continued to be concentrated with large trading houses and industrial consumers, enabling buyers to maintain a need-based procurement strategy rather than actively entering the spot import market. Adequate stocks at major handling ports ensured uninterrupted supply to end-users while reducing the urgency for fresh imports.

Market dynamics

India's non-coking coal market remained subdued during the week as weak steel and sponge iron demand, high domestic coal availability and the ongoing monsoon continued to weigh on import demand. Despite a marginal increase in port inventories, procurement remained largely requirement-based, with buyers limiting purchases to immediate needs amid adequate stock levels.Competitive domestic coal prices, regular Coal India subsidiary auctions and steady domestic supplies continue to curb import demand.