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India Coal Imports Surge, But Drop Expected Soon
5 Jan
Summary
- India's coal imports surged 28.1% in November.
- Winter restocking and weak seaborne prices fueled the import rise.
- Increased domestic supply is expected to decrease future imports.
India's coal imports saw a substantial 28.1% increase in November, reaching 25.07 million tonnes compared to 19.57 million tonnes in the same month last year. This rise was mainly attributed to winter restocking by steel mills and opportunistic purchasing by buyers influenced by weak seaborne prices.
Non-coking coal imports grew to 14.28 million tonnes, up from 12.32 million tonnes, while coking coal imports also increased significantly to 6.51 million tonnes from 4.25 million tonnes during the same period. This indicates a broad-based demand increase across different coal types.
Despite the November surge, industry experts anticipate a decline in coal imports in the forthcoming months. The primary driver for this expected downturn is the projected increase in the availability of domestically produced coal, which is poised to meet market demand more effectively.
