India’s coal import landscape is undergoing a notable shift, marked by contrasting trends between power and steel sector demand. Latest data from mjunction services shows a sharp drop in overall coal imports in July 2025, underscoring the impact of seasonal demand slowdown, high domestic stock levels, and rising domestic coal production.
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India’s coal imports dropped sharply by 16.4 per cent in July 2025, falling to 21.08 million tonnes (Mt) from 25.23 Mt in the same month last year. The decline, driven by subdued demand during the monsoon season and sufficient domestic stockpiles, was reported by mjunction services, a joint venture of Tata Steel and SAIL. The fall aligns with a broader downward trend, as coal imports for the April–July period of the fiscal year also recorded a decline, highlighting evolving dynamics in India’s energy supply chain.
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Varma noted that demand is likely to rebound ahead of the festive season, which typically starts in late September, potentially driving higher coal consumption across sectors. Vinaya Varma, MD & CEO of mjunction, attributed the decline primarily to three factors:
In July 2025, imports of non-coking coal, primarily used for power generation, fell sharply to 11.54 million tonnes (MT) from 16.52 MT in July 2024. In contrast, coking coal imports, which are essential for steelmaking, increased to 5.85 MT compared to 4.81 MT in the same month last year, reflecting continued strength in the steel and heavy industry sectors. Varma noted that demand is likely to rebound ahead of the festive season, which typically starts in late September, potentially driving higher coal consumption across sectors.
Although non-coking coal imports declined sharply on the back of weaker power demand, coking coal imports registered an increase, reflecting steady to rising activity in the steel and heavy industry sectors.
April to July 2025
In the first four months of the fiscal year 2025, India’s total coal imports stood at 97.49 million tonnes (MT), slightly lower than the 100.48 MT recorded during the same period of the previous fiscal year, reflecting a modest year-on-year decline.
During the April–July period of fiscal year 2025, India’s non-coking coal imports, mainly used for power generation, declined to 60.62 million tonnes (MT), down from 65.64 MT in the corresponding period of the previous fiscal year, indicating a notable reduction in reliance on imported coal for energy needs.
In the April–July period of fiscal year 2025, India’s coking coal imports, primarily used in steelmaking, rose to 22.22 million tonnes (MT), compared to 20.26 MT in the same period of the previous fiscal year, highlighting stronger demand from the steel and heavy industry sectors.
This reflects a clear trend that thermal coal imports continue to decline, whereas demand from the steel sector remains robust.
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