Media reports Indian coal shipments from Russia reach two year high
(MENAFN) India’s imports of Russian thermal coal surged to a two-year high in May, reaching 1.3 million tons, according to a report published Friday by Kommersant. The increase was largely driven by attractive pricing and the superior quality of Russian coal, with Russia now making up 7.5% of India's coal imports.
India, which imported 9.8 million tons of coal from Indonesia in the same month, is shifting its focus toward sourcing higher-grade coal from Russia. Overall, the country’s thermal coal imports rose by 10% in May to 17.4 million tons—the highest monthly volume since June 2024—based on data from BigMint.
Nariman Taiketayev, Director of the Corporate Ratings Group at National Credit Ratings, noted that Indian buyers are increasingly favoring Russian coal over the lower-calorific-value Indonesian variety due to both quality and competitive pricing. He added that Russia’s flexible pricing strategy gives it an advantage in the Indian market, although future demand will also be influenced by weather conditions and broader price trends.
Evgeny Grachev of the Russian Centre for Price Indices suggested that the increased shipments from Russian exporters likely occurred under existing contractual agreements. He pointed out that the early arrival of the monsoon season in India will boost hydropower output, potentially reducing demand for coal-based power generation.
India relies on coal to generate about 70% of its electricity. In March, it recorded an all-time high coal output of 1.04 billion tons. Coal Minister G. Kishan Reddy has projected that production will grow to approximately 1.53 billion tons by 2030.
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