India’s thermal coal imports drop for sixth straight month in Feb amid weak manufacturing

The fall in imports is attributed to sluggish manufacturing activity, muted growth in coal-fired power generation, and rising domestic coal output.

Data from Indian consultancy Bigmint revealed that India, the world's second-largest thermal coal importer, imported 12.16 million metric tons of thermal coal in February — a 15.3% decline from the previous year, the Reuters report said.

Over the six months ended February 28, thermal coal imports fell 20% to 77.3 million metric tons.

The dip in manufacturing activity, which has slowed to its weakest pace in over a year, has dampened demand for imported coal.

Higher domestic production and a growing share of renewable energy generation contributed to reducing coal shipments.

Coal-fired power generation remained largely flat in the first two months of 2025.

While demand is expected to rise during the summer months between April and June as utilities brace for higher electricity consumption, increased domestic output may prevent a significant surge in imports.

"Coal demand is expected to remain strong in the coming months during the summer season. However, the non-power sectors continue to experience sluggish market conditions," India-based coal trading firm I-Energy said in a note on Monday, the report added.

Thermal coal prices, which had plunged to multi-year lows earlier in 2025, have recently rebounded slightly but still remain over 30% higher than levels seen in the latter half of the previous decade, said the report.

The decline in India's imports contrasts with a steady rise in shipments purchased by China, the world's top coal importer.

However, analysts and industry officials have cautioned that global demand weakness could pose challenges in the coming months, the report said.