India coal short-term outlook July 2023
India’s power demand remained subdued during the first two months of Q2, primarily due to a rapid drop in cooling requirements, thanks to unseasonal rainfalls. Power demand, however, is recovering with a rise in temperature across the country. Domestic coal production thrived during the quarter and will remain robust with expectations of normal monsoon this year. Thermal coal imports also remained strong and will continue in the near term. An increase in heating requirements, government mandates to the power sector to import coal, and falling seaborne coal prices will support imports by the power sector. India's hot metal production increased by 4% yoy in April-May due to higher hot metal output from integrated steel mills and recovery in steel exports. Recovery in steel exports and infrastructure led spending ahead of election in 2024 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.