India's Coal Import Trends: An Analysis

India's coal imports experienced a 2% increase, reaching 182.02 million tonnes (MT) from April to November of the current financial year, compared to 178.17 MT in the same period last year, according to data from mjunction Services Ltd.

However, a notable decline was observed in November, with imports dropping to 19.57 MT from 22.30 MT in November 2023. Vinaya Varma, MD and CEO at mjunction, commented on the trend, stating, "The decrease in volumes was anticipated due to the ample availability in the domestic market, reducing the demand for imports from sectors like sponge iron and steel. Additionally, power plants' comfortable stock positions led to a muted demand for imports."

Varma also suggested that this trend in coal imports is likely to continue in the coming months.

Breaking Down the Numbers

Non-coking coal imports for the April-November period slightly decreased to 117.73 MT from 118 MT last year. Similarly, coking coal imports saw a reduction, falling to 36.93 MT from 37.97 MT.

The Indian government is actively encouraging an increase in domestic coal production to reduce reliance on imports. Under the current policy, consumers are free to import coal based on their needs and commercial considerations.

Coking coal is primarily imported by the Steel Authority of India Ltd (SAIL) and other steel producers to meet demand and enhance product quality. Non-coking coal is imported by various industries, including power plants, cement manufacturers, sponge iron plants, and traders. Coke imports are crucial for the pig iron and mini-blast furnace sectors.