Coal Demand Remains Weak Amid Market Glut and Seaborne Price Softness
The coal demand, subdued by extended monsoon and an overall sluggish scenario, is expected to remain slow in the current fiscal year, according to mjunction services. However, despite the temporary market glut, mid-to-long term demand may grow slowly. The renewables sector shows growth, contrasting coal's negative trend.
- Country:
- India
The demand for coal ahead of the festive period has been subdued, primarily due to an extended monsoon. Industry experts, including mjunction services, anticipate this sluggish demand to persist throughout the current fiscal year.
Despite a market glut facing the domestic coal industry, mjunction CEO Vinaya Varma believes that coal demand will increase in the mid-to-long term due to planned thermal power projects. However, he stresses the importance of balancing supply and demand to safeguard investments, especially from new commercial miners.
The previous year saw India reach a milestone of producing one billion tonnes of coal, driven by double-digit growth in captive and commercial production. Yet, this fiscal year, demand hasn't matched supply, and coal's share in power generation is decreasing, with a 5.4% drop till August 2025. Meanwhile, the renewable sector shows an upward trend.
(With inputs from agencies.)
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