India's coal imports down 8.5%: Here we decode why
What's the story
India's coal imports declined by 8.5% in February, reaching 16.55 million tons (MT). The decline is attributed to high domestic coal stockpiles and firm international prices. The trend is likely to continue as domestic miners are working to reduce their inventories. Coal stocks at thermal power plants remain strong, ensuring uninterrupted power generation across the country.
Trends
Insights on coal import trends
Vinaya Varma, MD & CEO of mjunction, said the record-high stockpile of domestic coal and firm seaborne prices have led to a decline in thermal coal imports. He further noted that "the weak trend in imports is expected to continue during the current month," as domestic miners are working hard to liquidate their stocks. This strategic move is part of India's larger push for self-reliance in coal production.
Import details
Non-coking coal imports fell significantly
In February, non-coking coal imports stood at 9.80 MT, down from 11.08 MT in the same month last year. On the other hand, coking coal imports were slightly higher at 3.92 MT compared to last year's 3.79 MT for February. These figures indicate a shift in India's coal import patterns amid changing domestic production and consumption dynamics.
Production growth
Coal production and inventory status
India's coal production for 2024-25 stood at 1,047.523 MT, up from 997.826 MT in 2023-24. This represents a growth of about 4.98%. Coal inventories at thermal power plants remain comfortable at around 55 million tons as of last week, enough for 24 days of uninterrupted power generation based on average consumption over the last seven days.