InvestorQ : If there is a coal crisis in India, why are imports of coal down?
Rashi Mehra made post

If there is a coal crisis in India, why are imports of coal down?

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Archita Jajjoo answered.
2 months ago
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In fact, that is the irony of the coal crisis currently on in India. The sharp spike in coal prices in the global markets has pulled down India’s coal imports since international coal prices are up nearly 4 times in the last 8 months. For example, in Aug-21 Indian coal imports fell 2.7% YOY to 15.22 MT. During the same period, the domestic demand for coal had spurted due to higher power demand in sync with the opening of Indian business to pre-COVID levels.

Out of total imports of coal in Aug-21, non-coking coal (used in power plants) was 9.08 MT, while coking coal imports (used predominantly in steel manufacturing) surged to 4.37 MT. If you compare Aug-21 with Jul-21, coal imports were lower by 6.7%, which is a huge fall on a monthly basis. In the Apr-Aug 5 months, non-coking coal imports rose by 18.8% YOY to 60.85 MT while coking coal imports surged 54.3% to 22.19 MT. Coal India is struggling to match up to the enhanced demand.

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