Coal shortages put pressure on Indian steel makers
Coal inventories at over 40% of India’s operational coal plants were critically low, raising blackout risks for households and steel mills. JSW Steel showed long build-up, while Tata Steel saw short build-up in futures on 12 Oct 2026.
pre-market1 source ↓machine-written, see hownot a recommendation
- JSWSTEEL close
- ₹1,173
- On the day
- +0.43%
- Futures OI, long build-up
- +0.8%
- Put-call ratio
- 0.73
- Max pain
- ₹1,220
Coal inventories at Indian power plants have fallen sharply as electricity demand rose amid warmer weather and weak hydropower generation, triggering blackouts for some households, smaller factories and steel mills. Bloomberg, cited by OilPrice.com, reported that more than 40% of operational coal-fired power plants had critically low inventories at the end of September. The article said 85 plants had stocks below a critical threshold by 1 Oct 2026, but the available excerpt did not specify the threshold or the subsequent inventory position. ⚡
The disruption matters for steel producers because power cuts can interrupt melting, rolling and downstream processing, while tighter electricity availability can raise operating costs for smaller industrial units. The supply stress follows what the article described as India’s weakest monsoon season in a decade, with lower rainfall reducing hydropower output and a record El Niño contributing to above-normal temperatures. Energy-intensive metals and manufacturing businesses therefore remain directly exposed to the availability and cost of grid power. 🏭
OI Charts data for 12 Oct 2026 showed mixed positioning in the two tracked steel stocks. JSW Steel closed at ₹1,173, up 0.4% on the day, but was down 5.0% over five sessions and 10.1% over 20 sessions. Its futures open interest rose 0.8% in a long build-up, while the put-call ratio was 0.73. The largest put open interest was at ₹1,180, and max pain stood at ₹1,220 for the 27 Oct 2026 expiry.
Tata Steel closed at ₹172.24, down 0.9% on the day, extending declines of 3.3% over five sessions and 7.8% over 20 sessions. Futures open interest increased 0.4% in a short build-up, with a put-call ratio of 0.56. The largest put open interest was at ₹190, the largest call open interest at ₹200, and max pain was ₹180 for the same expiry. 📉
The next market focus is the government’s coal-stock data, plant-level supply normalisation and any evidence that power restrictions are spreading or easing. For steel, investors will also watch whether outages affect production volumes, delivery schedules or energy costs. The key derivatives levels are ₹1,180 and ₹1,220 for JSW Steel, and ₹180 to ₹200 for Tata Steel.
Source: OilPrice.com, 12 Oct 2026
Not investment advice. For informational purposes only.