India Surges Russian Thermal Coal Imports to Record Highs

India's thermal coal imports from Russia soared to a two-year peak in May, marking a significant 52% increase from April, according to business daily Kommersant. This upsurge brought the total to 1.3 million metric tons, a notable achievement attributed to Russia's flexible pricing strategies and the quality of its coal.

However, experts argue that a major leap in Russia's market share in India is unlikely, owing to the nation's rising domestic coal production and steep logistical costs. Maintaining the current import levels appears feasible as India's total thermal coal imports in May hit 17.4 million tons, the highest since June 2024.

Russia contributed approximately 7.5% to India's total coal purchases, trailing behind Indonesia, which expanded shipments to 9.8 million tons. The monsoon season's early onset in India places pressure on thermal generation, intensifying the demand dynamics for coal. Future import trends will pivot on price fluctuations and potential geopolitical turbulence.

(With inputs from agencies.)