India's coal imports rebounded in October after falling for two consecutive months, as Indian buyers tried to stock up ahead of holidays and peak hours for coal consumption during winter.

The country imported 19.86 million tonnes of coal in October, down 24.74% from 26.39 million tonnes a year ago but bouncing back by 8.39% from 18.33 million tonnes in September 2024, according to the latest data from the Indian Ministry of Commerce and Industry.

Coal imports amounted to $2.24 billion in October, down 29.49% year on year (YoY) but up 2.8% month on month (MoM). This put the average coal import price at $112.94/t, declining 6.32% YoY and 5.15% MoM.

However, domestic coal production in India is expected to climb during the fourth quarter, possibly curbing the country's demand for coal imports in the coming months.

India generated 114.1 TWh of electricity from coal combustion in October, lower than 117.26 TWh last year, according to the Central Electricity Authority (CEA). As of end-October, coal stocks at power plants totaled 35.3 million tonnes, down from 36.87 million tonnes around the end of September yet higher than 21.15 million tonnes a year ago.

Data showed India's hydropower generation grew 28.61% on the year to 14.16 TWh in the given month, while nuclear power generation increased 6.13% to 4.27 TWh.

The nation's coal imports totaled 214 million tonnes from January to October, up 3.77% from the year before, narrowing 4.18 percentage points from January-September period, data showed. The import was worth $28.06 billion, down 7.96% on the year.

The average import price was calculated at $131.28/t, falling 11.3% from the year prior.

India's coal imports experienced months of year-on-year declines, mainly due to weaker power demand, increased electricity generation from renewables and rising domestic coal output. October even saw the largest year-on-year slump in past 15 months.

In breakdown by coal type, India imported 15.5 million tonnes of thermal coal over October, down 27.96% YoY but rising 8.85% MoM, accounting for 78.01% of the total coal imports.

Coking coal imports reached 4.13 million tonnes, down 11.92% YoY yet increasing 2.21% MoM, making up 20.77% of the total. The imports of anthracite were 242,500 tonnes, growing 21.51% YoY and soaring 350% MoM.

By origin, the top five sources in October were Indonesia, South Africa, Australia, Russia and the U.S., accounting for a combined 88.25% of the total coal imports, higher than 88.1% a month ago.

India imported the most coal from Indonesia at 8.71 million tonnes in October, falling 33.88% YoY and 3.1% MoM, which accounted for 43.85% of India's total coal imports, higher than the previous month's 49.05%. Coal imports from South Africa reached 2.79 million tonnes, down 6.12% YoY but jumping 50.66% MoM, accounting for 14.06% of the total.

India imported 2.69 million tonnes of coal from Australia in October, decreasing 33.72% YoY but climbing 19.28% MoM, accounting for 13.54% of total coal imports. The intakes from Russia reached 1.88 million tonnes, rising 17.88% YoY and 12.8% MoM.

Coal imports from the U.S. stood at 1.46 million tonnes, down 31.06% YoY but up 5.63% MoM.

Additionally, India imported 378,400 tonnes of coke over the given month, rising 18.02% YoY and 4.94% MoM. The imports amounted to $110 million, a 6.14% rise YoY but a 2.74% drop MoM. Coke imports over January-October came in at 4.01 million tonnes, up 27.46% YoY, which was worth $1.29 billion, gaining 9.9% YoY.

India will be dependent on coal for power generating and central government is confident in churning out 1.08 billion tonnes of coal during the fiscal year 2024-25, said Kishan Reddy, the head of the country's coal ministry.

India will continue to implement strategic measures to push up coal production and improving supply in the future. These efforts will not only help reduce coal imports and protect foreign exchange reserves, but also enhance India's energy security, according to the ministry.

It also noted the proactive measures taken by the government to increase domestic coal production will ultimately reduce India's dependence on imported coal and help enhance the overall sustainability of the country's energy landscape.