Explosive Surge! India's Coal Imports Skyrocket Ahead of Festivals – Steel Sector Roars Back!

Commodities

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Updated on 16 Nov 2025, 07:19 am

India experienced a substantial 13.54% jump in coal imports during September, reaching 22.05 million tonnes compared to 19.42 million tonnes in the same month last year. This surge is largely attributed to heightened demand ahead of the festive season and a strong need for coking coal by the steel industry.

Specifically, non-coking coal imports rose to 13.90 MT from 13.24 MT, while coking coal imports, vital for steel manufacturing, climbed significantly to 4.50 MT from 3.39 MT a year ago. For the first half of the fiscal year (April-September), non-coking coal imports slightly declined to 86.06 MT, but coking coal imports increased to 31.54 MT. According to Vinaya Varma, MD & CEO of mjunction services, buyers increased positions before the festive season, and winter restocking demand from steel mills is expected to continue driving coking coal imports.

Sector experts note that strong demand for metallurgical and industrial coal from steel mills is expected to outweigh any seasonal weakness in power sector procurement. India continues to focus on reducing import dependency by enhancing domestic production, yet imports of high-grade thermal and coking coal remain essential for industries like steel.

Impact This surge in coal imports directly affects companies involved in the coal supply chain, particularly steel manufacturers who rely on coking coal. It can lead to increased input costs for these industries, potentially impacting their profitability. The trend also has implications for India's trade deficit and foreign exchange reserves. Government initiatives aimed at achieving self-sufficiency in coal production are critical in the context of these import trends. Rating: 7/10

Difficult Terms: Non-coking coal: Coal primarily used for power generation and other industrial purposes, but not for making coke used in steel production. Coking coal: A type of coal, also known as metallurgical coal, that is essential for producing coke used in blast furnaces for steel manufacturing. Metallurgical coal: A grade of coal that is used in the process of making iron and steel. Thermal coal: Coal primarily used for generating electricity in thermal power plants.