India's coal imports in October 2025 declined to the lowest for the month in three years, reflecting subdued industrial activity, seasonal disruptions, and abundant domestic supply.

The country imported 19.58 million tonnes of coal in October, down 0.82% year on year (YoY) and 6.18% month on month (MoM), according to iEnergy's latest monthly report.

The drop comes against a backdrop of a slowing world economy, seasonal fluctuations domestically, and shifting government policies. While the overall volume contracted moderately, notable divergences emerged across segments of the coal market.

In the global market, export disruptions in Indonesia and Australia due to adverse weather coincided with softening demand in Asia's two largest coal importers, China and India, putting further pressure on the seaborne trade.

In India, the Diwali holiday and extended monsoon rains dampened industrial activity, which, combined with sufficient domestic supply, curbed demand for imported coal. Petroleum coke imports also weakened due to tepid industrial activity and more price-competitive thermal coal.

India's coal output stood at 77.43 million tonnes in October, down 8% YoY but up nearly 14% MoM, as mining activity rebounded after the monsoon. However, downstream demand faltered. Power demand dropped 5.2% YoY, with unseasonably cool and wet weather reducing air-conditioning loads.

Imports of petroleum coke and metallurgical coke increased 11.8% and 47.15%, respectively, reaching a combined volume of 2.08 million tonnes in October. This was driven by selective restocking from mills keeping steady and cautious needs for met coke during the holiday, yet high inventory levels and slower steel production constrained demand. Ample domestic supply and the holiday effect also limited purchases for spot cargoes and the demand growth.

Cumulative coal imports totaled 208 million tonnes during the first ten months, down 1.73% YoY, shrinking by 0.03 percentage point compared to January-September, iEnergy data showed.

In breakdown by type, the South Asian nation imported 12.94 million tonnes of non-coking coal in October, down 5.47% YoY and 8.37% MoM, while anthracite imports slumped 55.32% YoY but climbed 45.51% MoM to 127,600 tonnes. Excluding the COVID-affected years of 2021-22, India's thermal coal imports in October hit a seven-year low, largely due to weak power demand and ample domestic supply.

Weak downstream demand restrained industrial activity, reflecting lagging mining and consumption-linked segments.

Lukewarm demand hit thermal generators the hardest. The all-India plant load factor (PLF) at thermal power plants sank to 57.5%, the lowest in four years. The PLF at the state-run NTPC fell from 78.1% a year earlier to just 68%. Despite this, coal continues to dominate India's energy mix, accounting for nearly 70% of total generation.

India's installed power capacity reached 501 GW by September 2025, boosted by 25 GW of renewable additions in FY26 so far, including 22 GW of solar. The country is also advancing a 337 GW clean energy tender pipeline.

The cement sector also witnessed bleak demand in October amid slowed construction activity due to labor shortages during the Diwali holiday and lingering rains. With the festive period concluding and weather conditions normalizing, industry insiders expected a gradual recovery in cement demand over the coming months as labor availability improves and project execution picks up.

Imports of coking coal reached 5.01 million tonnes during the month, up 19.63% YoY and 5.88% MoM. Imports of PCI coal totaled 1.50 million tonnes, down 5% YoY and 22.17% MoM.

Steel manufacturers began pre-winter restocking in the month. Government restrictions on met coke imports further pushed steelmakers to secure more coking coal directly. The government's measures to streamline import procedures are ensuring stable supply of key steel products while buoying domestic capacity expansion.

India imported 322,400 tonnes of met coke in October, rising 6.9% YoY and 54.52% MoM, while petroleum coke imports grew 12.76% YoY and 45.87% MoM to 1.76 million tonnes.

India's steel and sponge iron industries imported most coal in October, reaching 7.68 million tonnes, down 2.76% YoY and 7.86% MoM, as per iEnergy data.

In the month, India's power sector imported 2.98 million tonnes of coal, down 39.8% YoY and 11.04% MoM; the cement sector imported 940,800 tonnes, up 40.06% YoY but down 0.3% MoM; and the chemical industry received 628,300 tonnes, surging 46.01% YoY and 145.11% MoM.

By origin, Indonesia remained India's largest coal supplier in October, shipping 8.27 million tonnes, falling 3.86% YoY and 7.61% MoM. Australian coal arrivals gained 11.72% YoY yet slid 15.71% MoM to 3.30 million tonnes.

Imports from South Africa rose 8.53% YoY and 12.02% MoM to 3.10 million tonnes, and Russian coal imports dropped 6.39% YoY and 19.78% MoM to 2.02 million tonnes. Coal intakes from the U.S. ascended 10.19% YoY and 22.04% MoM to 1.81 million tonnes.

As the festive season and monsoon disruptions fade, construction and industrial output are expected to recover gradually, supporting coal demand in sectors like steel and cement, and power. Nonetheless, high domestic and power plant stockpiles may continue to suppress short-term import appetite. India's coal imports may continue to move amid multiple factors.