India’s thermal coal imports have fallen for the sixth straight month in February, driven by increased domestic production and slow demand growth from industry and power generation.
According to data from Indian consultancy Bigmint, cited by Reuters, India’s imports of thermal coal, used for power generation, dropped 15.3% to 12.16 million metric tons in February.
Over the six-month period leading up to February, the country’s imports are estimated to have fallen by 20%, totaling 77.3 million tons. India, the world’s second-largest coal importer after China, has been working to boost domestic coal production and reduce its reliance on foreign imports, which contributed to the recent decline.
Other factors include stagnant demand for power generation during the first two months of 2024 and slowing manufacturing growth. Despite India’s manufacturing sector remaining in expansion territory, February’s growth was the weakest since December 2023, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI) survey by S&P Global.
However, analysts predict that coal demand will rise as the summer season approaches and temperatures increase.
India’s coal imports have dropped in 2024 as the country focuses on increasing its domestic supply. While India has vast coal reserves, the quality tends to be lower than imported coal, resulting in less energy output when burned.
In 2024, coal-fired power generation and emissions in India reached record levels due to rising electricity demand and the increased use of domestically mined coal. Domestic coal production also reached a new high as the government pushes to reduce imports.
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