India, China Coal Imports Rise Amid Domestic Production Challenges

India's coal imports increased by 1.5% to 76.40 million tonnes during the April-June quarter of fiscal 2025, driven by a rise in coking coal imports despite government efforts to boost domestic coal production. State-owned Coal India Limited reported an 8.5% decline in coal production in June, mainly due to monsoon-related operational challenges, but the Coal Minister assured no coal shortages during the rainy season. Meanwhile, China is expected to see a significant rise in thermal coal imports in August, reaching 25.63 million tons, the highest monthly total since December 2024, largely due to a dip in domestic coal production and steady growth in thermal power generation. Indonesian and Australian coal exports to China are increasing, supported by lower coal prices and government interventions to limit oversupply and overcapacity in coal production. Additionally, China's coking coal imports rose by 5.7% in July, driven by increased steel production and concerns over domestic coal supply disruptions amid stricter regulations and safety checks. Contrastingly, India's coal imports for August are forecasted to decline, attributed to rising hydropower, wind, and solar energy generation reducing coal demand.