US Coal Stocks Surge 60% at Western Ports as India Imports Soften

India's market for imported fuel experienced softer conditions at the start of November, driven by rising inventory levels at western ports and subdued buying interest. As shipments of india coal arrived, retail indications drifted toward INR 17,000 per tonne. Meanwhile, cement manufacturers continued to assess the cost-effectiveness of imported varieties against petcoke and domestic alternatives.

Data gathered between 26 October and 2 November revealed that Northern Appalachian coal stocks located at Kandla and Tuna surged by nearly sixty percent to 457,083 tonnes. Weekly offtake remained steady near 61,000 tonnes, showing that cargo replenishment significantly outpaced immediate absorption within the monitored retail channels. Additional shipments visible in the November and December schedules include roughly 680,000 tonnes of outstanding US thermal coal parcels, heightening the pressure on sellers.

Market checks conducted in early November placed several US coal offers around INR 17,000 to 17,100 per tonne ex-warehouse, down from pricing near INR 18,000 per tonne at the close of October. Traders attributed the price retreat to slow purchasing, ongoing vessel arrivals, and continued resistance from brick-kiln consumers. Buyers displayed a cautious approach, preferring to wait for further price drops before committing to inventory accumulation.

US coal stocks at western ports surged nearly sixty percent as arrivals outpaced local absorption.

Industrial Demand and Fuel Flexibility

Cement producers maintained operational flexibility between different energy sources. Data from major cement makers showed varied adjustments in their fuel mixes, with companies reducing petcoke reliance while exploring competitive pricing for imported grades. Although high heat content and low ash levels preserve the appeal of Northern Appalachian coal, buyers must carefully weigh these technical advantages against delivered costs and alternative domestic supplies.

Why it matters

The accumulation of higher stocks alongside relatively flat evacuation rates places mounting pressure on sellers to adjust pricing across Indian industrial channels. Whether prices can stabilise depends heavily on whether post-festive holiday demand absorbs the incoming supply pipeline.