India's coal imports rose to a four-month high in March, though volumes failed to extend the year-on-year uptrend seen a month earlier.

The country imported 19.66 million tonnes of coal in March, falling 3.13% from 20.3 million tonnes in the same month last year, yet increasing 6.96% from 18.38 million tonnes in February, according to data from the Indian Ministry of Commerce and Industry.

Rising temperatures pushed up coal demand in India during March, supporting the yearly growth in coal intakes. Coupled with expectations of hotter weather ahead, the power and industrial sectors showed a stronger appetite for coal purchases.

Meanwhile, although the country's power demand increased only marginally, total power generation stood at 149 TWh in the month, marking the highest March level in a decade. Stable power consumption supported coal-fired generation, driving a month-on-month increase in coal imports.

However, India's monthly coal imports remained relatively low so far this year. Partly affected by global uncertainties and elevated imported coal prices, domestic buyers showed sluggish demand for imported cargoes, while power plants preferred domestic supplies over imports despite relatively firm demand.

Coal imports were valued at 2.42 billion in March, up 14.85% year on year (YoY) and 15.61% month on month (MoM). This put the average coal import price at $123.19/t, growing 18.56% YoY and 8.09% MoM.

Over the first three months this year, India imported 57.05 million tonnes of coal, 5.5% lower than the year-ago level. The import was worth $6.62 billion, down 1.32% YoY.

In breakdown by coal type, India imported 13.3 million tonnes of thermal coal in March, falling 15.56% YoY and 3.46% MoM, accounting for 67.63% of the total coal imports, far below February's 74.92%.

Coking coal imports stood at 6.26 million tonnes, jumping 41.95% YoY and 40.72% MoM, making up 31.85% of the total. The imports of anthracite were 102,200 tonnes, diving 26.12% YoY and 35.91% MoM.

By origin, the top five sources in March were Indonesia, South Africa, Australia, the U.S. and Russia, accounting for a combined 86.84% of the total coal imports, marginally lower than 87.1% in February.

India imported the most coal from Indonesia at 6.94 million tonnes in March, down 23.73% YoY and 7.99% MoM. That accounted for 35.29% of India's total coal imports, lower than February's 41.02%. Coal imports from South Africa amounted to 3.08 million tonnes, rising 4.02% YoY and 5.24% MoM, which grabbed a share of 15.64%.

The nation imported 2.97 million tonnes of coal from Australia in the same month, climbing 54.75% YoY and 29.66% MoM, taking up 15.1% of total coal imports. The intakes from the U.S. came in at 2.12 million tonnes, up 17.35% YoY and 36.49% MoM. Coal imports from Russia stood at 1.98 million tonnes, up 16.1% YoY and 15.59% MoM.

Additionally, India imported 511,500 tonnes of coke in March, rising 5.62% YoY but sliding 28.15% MoM. The imports amounted to $127 million, dropping 8.49% YoY and 28.84% MoM. Over January-March, coke imports in India totaled 1.79 million tonnes, surging 81.43% YoY, with value up 55.2% to $453 million.

Entering April, India moved into its summer peak power season, with the government projecting peak load at 270 GW previously. To ensure power supply security, power plants should maintain ample inventories, which may support coal imports.

However, plant inventories in the country remained sufficient. As of mid-May, India's coal stocks totaled 190 million tonnes. This, paired with smooth domestic supply and need-based procurement, may cap import recovery momentum.