NEW DELHI: Sectors like power, steel and cement are set to further push India’s coal imports as international prices are at two-year low and markets expect further downside in the near term.

The domestic prices remain at elevated levels at a time when Indonesian coal, a key source of Indian imports since July across grades, has seen a price drop of 25-36%. India’s overall coal imports touched a 40-month high of 22.5 million tonne in October and sourcing of coal from Indonesia has jumped mainly driven by restrictions on Chinese imports.

Domestic non-availability, or presence of only poor-quality coking coal used primarily in steel-making at a time when the sector is witnessing shooting demand, is also fuelling imports and outgo of foreign exchange.