India’s thermal coal imports have declined for the sixth consecutive month as of February, marking the longest losing streak since February 2022. Recent ship tracking data indicates that the drop can be attributed to slower coal-fired power generation, which is largely a result of diminishing manufacturing activity in the country. As the world’s fastest-growing major economy, India has seen manufacturing slow to its lowest pace in over a year, leading to reduced demand for imported seaborne coal and contributing to a decline in global thermal coal prices.
In February, India’s thermal coal imports fell by 15.3% to 12.16 million metric tons, according to data from Indian consultancy Bigmint. Over the six months leading up to February 28, total imports decreased by 20%, totaling 77.3 million metric tons. Beyond the manufacturing slowdown, heightened domestic coal production and an increased share of renewable energy generation have also played a role in the reduction of coal imports, which have remained largely unchanged in the early months of 2023.
Looking ahead, coal consumption in India is expected to rise as utilities gear up for a surge in electricity demand during the summer months of April to June. However, this anticipated increase may not necessarily translate into higher imports, as domestic coal production is on the rise. I-Energy, a coal trading firm based in India, noted in a recent report that while coal demand could remain robust, the non-power sectors continue to face sluggish market conditions.
Although thermal coal prices have seen a minor rebound in recent weeks after hitting multi-year lows in 2025, they still remain more than 30% higher than the levels recorded in the latter half of the previous decade. This decrease in Indian thermal coal imports coincides with an increase in shipments to China’s coal market, although industry experts warn of potential challenges ahead.