INDIA'S THERMAL COAL IMPORTS SEEN FALLING FOR FIRST TIME SINCE PANDEMIC

India's thermal coal imports are poised to decline for the first time since the onset of the COVID-19 pandemic, driven by increased domestic production and record-high inventories. Projections suggest that eight shipments of the fuel will decrease this year, with others anticipating either flat imports or slight growth. The surge in production and supplies by Coal India, the world's largest miner, has led to stockpiles at power plants reaching record levels exceeding 43 million metric tons. Consequently, Coal India has redirected its focus towards selling more coal to non-power sector users such as sponge iron and aluminium smelters, traditionally reliant on imports.

Pawan Kumar, head of coal sourcing at power producer SEIL Energy India, anticipates a over 3% decline in thermal coal imports to 170 million tons, while Rodrigo Echeverri, head of research at Noble Resources, forecasts a nearly 6% decrease. In 2023, India imported 176 million tons of thermal coal, primarily for power plants.

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