Coal Prices

India's coking coal import bill decreased from $19.2 billion in fiscal 2023 to $11.76 billion in FY26, as the country shifted imports from Australia to Russia and the US. Domestic output remains insufficient, which means domestic steelmakers are still exposed to global commodity price cycles.

Countries are returning to the highly polluting but reliable source of power after the Iran war effectively shut the Strait of Hormuz.

While global factors like the West Asia conflict and Indonesia's production cuts boost CIL's e-auction prospects, the company's sales volume has declined for two consecutive years. This creates a disconnect between stock performance and business reality.

India is the largest buyer of US coal globally. Coking or metallurgical coal accounted for more than 40% of the total 20 million tonnes of coal imported by India from the US in FY25.

Bharat Coking Coal Ltd, India’s first mainboard IPO of 2026, is prioritizing supplies to the steel sector over power producers—a shift that is already weighing on its financials.

Bharat Coking Coal is launching its IPO, which is being marketed as a play on India’s rising steel demand. However, the company faces a challenge as its coal has a high ash content, making it unsuitable for steel production without extensive washing.

A key contributor to the growth was the commencement of operations in two newly developed coal blocks during the month, the coal ministry said.

Coal use diversification has been on the agenda for the past few years, but increasing domestic coal production and supplies to the power sector had been at the core of the ministry's operations.