India's coal import pattern has shifted toward steelmaking grades, with metallurgical coal intakes hiking in FY2025-26 while reliance on imported thermal coal eased, according to a report released by the Multi Commodity Exchange of India Limited.

India imported around 244.2 million tonnes of non-coking and metallurgical coal during FY2025-26, nearly flat compared with 245.3 million tonnes in the prior fiscal year. Yet the steady headline total concealed a notable realignment in the mix of coal imports.

Coking coal arrivals climbed 12.4% year on year to 63.7 million tonnes in FY2025-26 from 56.6 million tonnes a year ago, while PCI imports advanced 6.2% to 20.9 million tonnes from 19.6 million tonnes. Total metallurgical coal imports thus reached 84.5 million tonnes, up 10.4% from 76.3 million tonnes a year earlier, buoyed by sustained demand from domestic steel producers.

By contrast, non-coking coal imports fell 5.5% on the year to 159.7 million tonnes in FY2025-26 from the year-ago 169 million tonnes, reflecting stronger domestic supply and reduced need for overseas thermal coal.

The report said that India's imports basket is progressively tilting away from fuels tied mainly to power generation and toward raw materials linked to steel output. As a result, future coal import trends are likely to hinge more on steel production cycles than on electricity consumption.

The report noted that incremental import appetite is now concentrated in metallurgical categories, where local supply cannot meet quality specifications.

The transformation is also redrawing India's sourcing map. Russia ranked among the fastest-growing suppliers in FY2025-26, with total deliveries rising 13.1% year on year to 32 million tonnes from 28.3 million tonnes.

Russian coking coal supplies to India expanded 12.1% to 9.2 million tonnes, while non-coking coal from Russia jumped 20% to 7.5 million tonnes, underscoring Moscow's expanding footprint in both metallurgical and thermal segments.

Australia, meanwhile, retained its position as India's principal source of premium coking coal, with overall exports to India increasing 9.3% to 43 million tonnes in FY2025-26. Australian coking coal shipments alone rose 13.4% to 34.3 million tonnes during the given period.

The report added that India's coal sourcing approach is turning more diversified and steel-oriented, as enhanced domestic thermal coal output reduces import dependence while the growing steel sector continues to rely on foreign metallurgical coal.