India’s thermal coal imports fall 15.3% to 12.16 mn tonnes in Feb

India’s thermal coal imports, primarily utilized for power generation, declined for the sixth consecutive month in February, according to ship tracking data, as coal-based power generation increased slowly due to a deceleration in manufacturing activity.

This marks the longest such period since February 2022, when imports fell for eight straight months.

Production in the world’s rapidly expanding major economy has slowed to its lowest rate in more than a year, dampening demand for seaborne coal in the nation and contributing to the downward trend in global thermal coal prices.

India, the world’s second-largest thermal coal importer, saw its imports decrease by 15.3 percent to 12.16 million metric tons in February, according to data from Indian consultancy Bigmint. For the six months ending on February 28, imports dropped by 20 percent to 77.3 million metric tons.

Alongside the manufacturing slowdown, a rise in domestic output and a greater proportion of renewable energy also aided in reducing imports, as the nation’s coal-fired power generation remained relatively stable in the initial two months of the year.

Although coal usage is projected to rise in the upcoming months as utilities gear up for a spike in electricity demand during the summer period from April to June, this may not result in increased imports since domestic output is also on the rise.

Thermal coal prices have shown a slight recovery in recent weeks after dropping to several-year lows in 2025 due to market worries about declining global demand. Nonetheless, they remain over 30 percent above the levels observed in the latter half of the previous decade.

A prolonged decrease in India’s thermal coal imports occurs while shipments acquired by leading importer China are increasing, although analysts and industry experts have highlighted possible risks.