Tue Sep 17 07:14:15 UTC 2024: ## India’s Thermal Coal Imports Hit 12-Month Low in August Amid Monsoon Surge

**New Delhi, September 4, 2024** – India’s thermal coal imports plummeted to a 12-month low in August 2024, driven by a significant drop in power demand due to the widespread monsoon rains. The heavy rainfall, particularly in the north and northwest, boosted hydropower generation and reduced reliance on thermal power plants (TPPs).

According to Kpler, a leading energy intelligence firm, seaborne thermal coal imports declined by 14% month-on-month in August, reaching 11.82 million tonnes (MT). This figure remained nearly flat compared to the same period last year.

Zhiyuan L, dry bulk commodity analyst at Kpler, attributed the decline to the ongoing monsoon season, stating, “Above-normal monsoon rains reduced cooling demand and, thus, the overall power and coal consumption.”

Crisil Market Intelligence & Analytics reported a 5.3% year-on-year drop in electricity demand in August, reaching 144 billion units (BUs). This follows a 6.7% increase in demand in July. Power generation also decreased by approximately 3% year-on-year, reaching 155 BUs in August. Both coal and renewable energy production contracted by 3% and 13% respectively during the month.

Conversely, hydropower generation surged by 7.6% year-on-year, fueled by ample rainfall in several states. The share of coal and renewable energy in power production increased marginally, while hydropower’s share climbed to 15% from 13%.

Despite the expected retreat of the southwest monsoon from northwestern India in mid-September, analysts predict a rebound in thermal coal imports in September. The continued weather-related disruptions in domestic coal production and the need to replenish depleted stockpiles at power plants are expected to drive up import demand.

In August, domestic coal production witnessed a rare 7.51% year-on-year drop, while power plant stockpiles declined significantly by over 22% compared to their March peak. Coal Ministry data reveals a 7.5% year-on-year and 15% month-on-month fall in coal production, reaching the lowest level since March 2023. Similarly, coal despatch also declined by 6.35% year-on-year and 13% month-on-month, hitting its lowest point in over 18 months, excluding September 2023.

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