India’s coal demand grew at highest pace globally in 2022

The biggest yearly growth rate of any nation will be seen in India's demand for coal in 2022 driven by increased coal-based power generation to combat above-average summer heat and growing economic activity.

The second-largest consumer of coal in the world increased its consumption by 14 per cent year over year (Y-o-Y) to 1033 million tonnes (MT) in 2021 according to the International Energy Agency's most recent data.

The analysis predicted that stronger power sector use would drive the highest growth in coal demand this year which would occur in India (7 per cent or 70 MT) the European Union (6 per cent or 29 MT) and

China (0.4 per cent or 18 MT). The IEA research noted that India's consumption has increased by a factor of two since 2007 at an average annual growth rate of six percent and it is expected to continue to drive growth in the world's demand for coal.

In India, the government has long attempted to boost production in order to decrease imports. The first occasion that coal production exceeded 800 MT was in 2021. We anticipate that India would produce more than 1 billion tonnes by 2025 it continued.

Steel and cement two sectors that rely heavily on coal grew in 2022. Average monthly cement production increased year over year by 11 per cent from January to September. Before slowing down in July as the start of the monsoon season slowed down construction the growth rate peaked in May. Production of hot metal and sponge iron climbed by an average of 6 per cent and 1 per cent per month respectively.

According to the paper overall we anticipate 2022 thermal coal usage outside the power industry to climb by 7 per cent and met coal by 2 per cent.