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India’s Thermal Coal Imports Drop Again Amid Manufacturing Slowdown

2025-03-12

India’s thermal coal imports fell for the sixth consecutive month in February, marking a 15.3% drop to 12.16 million metric tonnes, according to ship tracking data. This is the longest decline streak since early 2022, driven by slowing manufacturing activity and rising domestic coal production.

The world’s second-largest coal importer has seen muted growth in coal-fired power generation due to reduced industrial demand and increased renewable energy output. Despite expectations of higher electricity demand in the summer months, rising domestic production may keep imports subdued.

Though thermal coal prices have slightly rebounded from early-2025 lows, they remain over 30% higher than levels seen in the latter half of the last decade. Meanwhile, China, the world’s top coal importer, continues to boost shipments, though analysts warn of potential risks ahead.

(Business World)