India's coal imports extended the downward trend in February 2026, marking a fourth consecutive month of decline. This was driven by restricted electricity consumption as milder weather capped cooling demand. But the volumes remained above the year-ago levels amid sustained demand from the steel sector.

The country imported 18.38 million tonnes of coal in February, gaining 2.93% from 17.86 million tonnes in the same month last year, yet dropping 3.27% from 19 million tonnes in February, according to data from the Indian Ministry of Commerce and Industry.

The slight year-on-year growth in imports was partly attributed to the country's ongoing efforts to ramp up steel production, which offered support to the demand for steelmaking coal. However, the actual gains in import volumes remained limited, as some steelmakers are shifting to imported met coke as alternatives.

While demand for imported thermal coal was curbed by weak cooling demand amid relatively milder weather, demand from cement producers, owing to reduced petroleum coke imports, helped underpin imports for the material.

Potential petroleum coke supply constraints and rising prices, due to uncertainties in the Middle East, prompted Indian cement producers to increase coal procurement as a substitute, boosting demand for seaborne thermal coal. .

India, the world's largest importer of petroleum coke, saw its seaborne imports reach 12 million tonnes last year. Supplies from the Gulf region accounted for nearly one-third of the total.

Coal imports were valued at 2.1 billion in February, up 4.11% year on year (YoY) but edged down 0.19% month on month (MoM). This put the average coal import price at $113.97/t, growing 1.15% YoY and 3.18% MoM.

Over the first two months this year, India imported 37.39 million tonnes of coal, 6.69% lower than the year-ago level. The import was worth $4.19 billion, down 8.74% YoY.

In breakdown by coal type, India imported 13.77 million tonnes of thermal coal in February, gaining 3.38% YoY yet down 1.62% MoM, accounting for 74.92% of the total coal imports.

Coking coal imports stood at 4.45 million tonnes, up 2.08% YoY but down 10.46% MoM, making up 24.21% of the total. The imports of anthracite were 159,500 tonnes, diving 10.01% YoY yet surging 370% MoM.

By origin, the top five sources in November were Indonesia, South Africa, Australia Russia, and the U.S., accounting for a combined 87.1% of the total coal imports, marginally higher than 86.45% in January.

India imported the most coal from Indonesia at 7.54 million tonnes in February, up 2.98% YoY and 6.64% MoM. That accounted for 41.02% of India's total coal imports, higher than January's 37.21%. Coal imports from South Africa amounted to 2.92 million tonnes, rising 20.34% YoY and 10.56% MoM, which grabbed a share of 15.89%.

The nation imported 2.29 million tonnes of coal from Australia in the same month, descending 6.19% YoY and 3.19% MoM, taking up 12.46% of total coal imports. The intakes from Russia came in at 1.71 million tonnes, down 8.95% YoY and 22.81% MoM. Coal imports from the U.S. stood at 1.55 million tonnes, up 11.1% YoY yet down 27.34% MoM.

Additionally, India imported 711,900 tonnes of coke in February, surging 425.81% and 26.45% MoM. The imports amounted to $178 million, skyrocketing 307.28% YoY and 21.19% MoM. Over January-February, coke imports in India totaled 1.27 million tonnes, surging 154.82% YoY, with value up 113% to $326 million.

Going forward, Indian meteorological authorities have warned heatwaves in most regions from March-May, as the country gradually enters summer season. Rising cooling demand will drive up power consumption, thereby boosting thermal coal use and imports.

Meanwhile, tensions in the Middle East, coupled with tightening supplies and rising prices of petroleum coke, may prompt more cement manufacturers to switch to coal, further increasing demand for thermal coal.

Although India's steel production continues to expand, the growth in metallurgical coal imports is expected to be limited due to the trend toward substitution with met coke.