2 weeks ago
India's Coal Imports Turn Steel-Centric as Metallurgical Demand Rises
India needs coal for two big reasons: to make electricity and to make steel.
The coal used to make steel is called metallurgical coal, and India cannot dig up enough of it at home.
In the last financial year, India bought more of this special steel-making coal from other countries than before.
At the same time, India bought less of the regular coal used for electricity, because its own mines are producing more of that.
So India's coal shopping list is changing.
Russia sold India more coal this year, and Australia is still the biggest seller of the premium kind of steel-making coal.
This change means that what happens with steel in India now matters a lot for its coal imports.
India's metallurgical coal imports rose 10.4 per cent year-on-year to 84.5 million tonnes in FY2025-26, supported by steel sector demand.
Coking coal imports increased 12.4 per cent to 63.7 million tonnes, while pulverised coal injection (PCI) imports rose 6.2 per cent to 20.9 million tonnes.
Non-coking coal imports declined 5.5 per cent to 159.7 million tonnes, reflecting improved domestic coal availability.
Russia emerged as one of India's fastest-growing coal suppliers in FY2025-26, with shipments up 13.1 per cent to 32 million tonnes.
Australia remained India's key source of premium coking coal, with its exports to India rising 9.3 per cent to 43 million tonnes.
- Who
- India's steel and power sectors, major coal suppliers Russia and Australia, and the MCX, which published the report
- What
- India's coal import basket is shifting toward metallurgical coal, which rose 10.4 per cent, while imported thermal coal declined
- Where
- India
- When
- FY2025-26, according to a report published on August 15, 2026
- Why
- Growing steel industry demand and improved domestic thermal coal availability, since domestic supply cannot match metallurgical coal quality requirements
Key facts
- Total coal imports (FY2025-26)
- 244.2 million tonnes, broadly unchanged from 245.3 million tonnes
- Metallurgical coal imports
- 84.5 million tonnes (up 10.4 per cent)
- Coking coal imports
- 63.7 million tonnes (up 12.4 per cent)
- PCI coal imports
- 20.9 million tonnes (up 6.2 per cent)
- Non-coking coal imports
- 159.7 million tonnes (down 5.5 per cent)
- Russian coal shipments to India
- 32 million tonnes (up 13.1 per cent)
- Australian coal exports to India
- 43 million tonnes (up 9.3 per cent)
- Report source
- MCX report
Quotes
MCX report
Market analysis report from the Multi Commodity Exchange of India
“Incremental import demand is now concentrated in metallurgical segments, where domestic supply cannot match quality requirements.”
thehindubusinessline.com
Sources
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