India coal short-term outlook April 2023
India’s thermal coal demand remained robust during Q1 2023. Intense coal waves that swept across the northern India particularly, led to increased heating requirements during the winter. The continued acceleration of economic activities further boosted demand from the industrial sectors. Domestic coal production also thrived during the quarter as producers scrambled to meet fiscal year-end targets. Coal demand and imports will remain strong in the near term as India’s summer is forecast to remain extreme this year. Various government mandates to the power sector to maintain sufficient coal stocks will also boost imports significantly. India's hot metal production, which increased by 3% a year in 2022, is forecast to maintain a modest growth in 2023 as well. Rebound in steel exports, strong infrastructure growth and expansion of steel mills are expected to keep the steel demand strong this year. Read on to find out more about these issues and our forecast for the Indian coal market.