India’s dependence on imported coking coal continued to deepen in 2025, with imports rising by nearly 10% year-on-year to around 62.6 million tonnes, reflecting sustained expansion in blast furnace–based steel production. Total metallurgical coal imports, including PCI coal, stood at approximately 83.2 million tonnes, underscoring India’s growing footprint in the global seaborne met coal trade.
At a time when several major steel-producing economies witnessed stagnation or contraction, India remained an outlier, driven by infrastructure spending, automotive demand, and capacity utilisation improvements across integrated steel producers.
Steel Output Growth Anchors Import Demand
India’s steel production growth in 2025 remained firmly positive, contrasting with a global environment marked by soft construction activity and subdued manufacturing output. Higher hot metal production directly translated into stronger demand for high-quality coking coal, a segment where domestic availability remains structurally constrained.
Despite having large coal reserves, India relies on imports for 85–90% of its prime coking coal requirement, owing to:
- Low ash-yielding domestic reserves
- Limited beneficiation and washery capacity
- Inconsistent quality for blast furnace use
As a result, import growth in 2025 was not driven by inventory restocking but by core consumption needs linked to steel output expansion.
Supplier Mix Reflects Strategic Diversification
Australia continued to dominate India’s hard coking coal supply basket, maintaining its position as the primary source of premium grades required by large integrated steel mills. At the same time, India steadily diversified sourcing:
- Russia remained the leading supplier of PCI coal, supporting cost-optimised blast furnace operations
- The United States and Canada increased their presence in India’s import mix, especially for mid- to high-volatile coking coal grades
This diversification highlights a deliberate effort by Indian steelmakers to manage price volatility, logistics risks, and geopolitical exposure.
Domestic Production Declines Sharpen Import Reliance
Domestic coking coal output in 2025 declined by close to 10% year-on-year, primarily due to operational challenges and quality limitations. While overall coal production in India continues to rise, gains are concentrated in thermal coal, offering limited relief to the metallurgical segment.
This imbalance between steel demand growth and domestic met coal availability reinforces the structural nature of India’s import dependence, particularly for blast furnace operations.
Logistics and Port Handling Remain Supportive
Rising imports were supported by stable port infrastructure, with eastern and southern ports handling the bulk of coking coal inflows. Monthly import volumes showed consistent momentum in the second half of the year, indicating steady offtake rather than short-term buying spikes.
Improved evacuation efficiency and port-based blending facilities have further strengthened India’s ability to absorb higher import volumes without major logistical bottlenecks.
Outlook: Imports to Track Steel Capacity Expansion
Looking ahead, India’s long-term steel ambitions continue to underpin a bullish outlook for coking coal imports. With national steelmaking capacity expected to rise steadily through the decade, import volumes are likely to remain elevated despite policy initiatives aimed at boosting domestic beneficiation and washery capacity.
While government programs targeting coking coal self-reliance may moderate growth at the margin, imports will remain a critical pillar of India’s steel raw material security in the medium term.
Metalsbuy Market Pulse – Key Insight
India’s near-10% rise in coking coal imports in 2025 is not a cyclical anomaly. It reflects a structural alignment between steel capacity growth, raw material quality constraints, and global sourcing strategies, positioning India as one of the most influential demand centres in the global metallurgical coal market.