Archive · 9 Nov 2025
India's October Coal Imports: Thermal Hits Four-Month High, Metallurgical Rises
India bought more of a type of coal used for electricity in October, reaching its highest amount in four months.
This happened because less coal was produced in India, and factories needed more after the rainy season ended.
Although imports went up, they were still less than what India usually buys on average because there was already a lot of coal stored.
The cost of imported coal also went up a bit due to new tax rules.
For another type of coal used in making steel, imports also increased compared to last year because the steel industry is growing.
However, the growth in steel production is slowing down, so imports of this type of coal might decrease slightly.
Overall energy use in India also went down in October.
India's thermal coal imports reached a four-month high of 12.95 million tonnes in October, a 2.90% year-on-year increase.
The rise in imports was driven by lower domestic coal production and increased industrial demand following the monsoon season.
Despite the increase, October's thermal coal import volume was below the five-year average due to high stockpiles and the GST framework.
Metallurgical coal imports rose 11% year-on-year to 6 million tonnes in October, supporting the growth of India's steel sector.
Projections indicate thermal coal imports will stabilize around 12 million tonnes monthly through year-end, while metallurgical coal imports may slightly decrease due to a slowdown in steel production growth.
- Who
- India's energy sector, specifically thermal and metallurgical coal importers.
- What
- Thermal coal imports increased to a four-month high in October due to lower domestic production and post-monsoon demand, while metallurgical coal imports also saw a year-on-year rise driven by the steel sector's growth.
- When
- October 2025, with projections for the remainder of 2025 and references to historical periods like March-May and June-August 2025.
- Where
- India
- Why
- Lower domestic coal production, increased industrial and cement sector demand post-monsoon, and continued structural growth in the steel sector are driving imports, though offset by high stockpiles and GST framework impacts.
Factors Limiting Import Growth
Factors Driving Import Growth
Overall Import Volume (Thermal Coal)
Factors Limiting Import Growth
October thermal coal import volumes remained below the five-year average of 14 million tonnes due to high stockpiles, above-average rainfall, and the GST framework reducing the cost competitiveness of imported coal.
Factors Driving Import Growth
Thermal coal imports reached a four-month high of 12.95 million tonnes in October, a nearly 3% year-on-year increase, driven by lower domestic production and rising industrial demand after the monsoon season.
Metallurgical Coal Outlook
Factors Limiting Import Growth
Metallurgical coal imports are expected to be slightly below 6 million tonnes for the remainder of 2025 as domestic steel output growth slows, with crude steel production growth forecast to decrease to around 10% in Q4.
Factors Driving Import Growth
Seaborne metallurgical coal imports increased by 11% year-on-year in October, totaling 6 million tonnes, as India's steel sector continues its structural growth path.
- Thermal Coal Imports (October)
- 12.95 million tonnes (MT)
- Year-on-Year Change (Thermal Coal Imports, October)
- +2.90%
- Monthly Change (Thermal Coal Imports, October)
- +3.6%
- Five-Year Average Thermal Coal Imports (October)
- 14 MT
- Projected Thermal Coal Imports (Year-End)
- ~12 MT per month
- Metallurgical Coal Imports (October)
- 6 MT
- Year-on-Year Change (Metallurgical Coal Imports, October)
- +11%
- Energy Consumption (October 2025)
- 132 billion units (declined 6% y-o-y)
