India’s Russian Thermal Coal Imports Soar to Record High

(MENAFN) India’s thermal coal imports from Russia surged to their highest level in two years, reaching 1.3 million tons in May, according to media. This increase was largely driven by flexible pricing and superior quality coal from Russian suppliers, the report added. As a result, Russia now represents 7.5% of India's total coal imports.

In comparison, India also imported 9.8 million tons of Indonesian coal in May, yet the country is now looking to expand its intake of higher-grade Russian coal to diversify its supply.

The total amount of thermal coal imported by India in May jumped by 10%, hitting 17.4 million tons—the highest monthly figure since June 2024, media reported, citing data from BigMint.

Favorable market conditions have encouraged India to reduce purchases of lower-calorific-value Indonesian coal, opting instead for higher-grade Russian alternatives, which come at competitive prices. Nariman Taiketayev, Director of the Corporate Ratings Group at National Credit Ratings, explained to media that these trends reflect the evolving market dynamics.

Russian suppliers are typically more adaptable with pricing, and India's future coal demand will be influenced by a combination of price changes and weather-related variables, he stated.

Evgeny Grachev, director of the Russian Centre for Price Indices, noted that Russian coal exporters likely increased shipments to India within the framework of existing contracts.

Grachev further cautioned that India’s coal consumption could be impacted by the early onset of the rainy season, which is expected to boost hydropower generation and reduce the demand for thermal coal.

India, heavily reliant on coal for 70% of its electricity, had already announced a record coal production of 1.04 billion tons in March. Coal Minister G. Kishan Reddy has projected that the country’s production will hit approximately 1.53 billion tons by 2030.

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