Indian thermal coal imports are used in power plants for the sixth month in a row in February, ship tracking data shows, when coal power plants grow at speeds that are muted behind the slowdown in manufacturing activities.
This is the longest successive since February 2022, when imports have declined for eight consecutive months.
Manufacturing activities in the main economy that grow the fastest in the world slow down to the weakest speed in more than a year, inhibiting the appetite for sea coal in the country and increase the decline in global thermal coal prices.
Thermal coal imports by India – the second largest importer in the world – fell 15.3% to 12.16 million metric tons in February, data from the Indian BigMint consultant showed.
In the six months ended February 28, imports fell 20% to 77.3 million.
In addition to the slowdown in manufacturing, an increase in domestic production and higher parts of renewable plants also contributes to lower imports, with coal power plants in the country remain flat in the first two months of this year.
While coal consumption is expected to increase in the coming months because the utility is preparing to overcome the surge of electricity consumption during the summer months between April and June, it may not always lead to pickups in imports because domestic production also increases.
“Coal demand is expected to remain strong in the coming months during the summer. However, the non-strength sector continues to experience slow market conditions, “said India-based Coal Trading I-Energy in a note on Monday.
The thermal coal price has recovered a little in the last few weeks after plunging into the lowest multi-year position in 2025 amid market concerns about weaker global demand. However, they are still traded more than 30% higher than the level seen in the second half of the previous decade.
The sustainable decline in Indian thermal coal imports came when shipping purchased by leading Chinese importers grew, although analysts and industrial officials have marked potential risk in the coming months.
Source: Reuters
