[SMM Steel]

Global seaborne coal flows increased by 1% year on year to 116.5 Mt in July 2026, although trends diverged sharply between coal types. Thermal coal flows fell by 2.3% to 87.3 Mt, mainly due to weaker demand in Europe and the United States. Meanwhile, combined thermal coal flows to the four major Asian importing markets—China, India, Japan and South Korea—rose by 18.3%, indicating strong summer power demand across Asia. Global seaborne metallurgical coal flows increased by 11.8% to 27.2 Mt during the same period. Imports into China and Japan rose by 30% and 24%, respectively, offsetting an 18% decline in India.

India’s Directorate General of Mines Safety withdrew permission for controlled deep-hole blasting at Bharat Coking Coal Limited’s New Akashkinaree Colliery on 17 August. The decision followed land subsidence above abandoned IX Seam underground workings near the mine. The regulator ordered the suspension of blasting and mining until a scientific study declares the area safe and fresh written approval is obtained. The mine has a normative annual capacity of 1.47 Mt, but its actual output before the suspension and expected restart date were not disclosed. BCCL’s raw coal production declined by 21.1% year on year to 9 Mt during April–July 2026, although July output rose by 3.4% to 2.45 Mt.

Pakistan’s total power generation rose by 7% year on year to 15,122 GWh in July 2026. Imported coal-fired generation increased by 90% from 1,140 GWh a year earlier to 2,169 GWh, while local coal-fired generation rose by 10% to 1,650 GWh. Combined coal-fired output reached 3,819 GWh, accounting for 25.2% of total generation, with both imported and local coal generation reaching their highest levels for any July. Meanwhile, RLNG- and gas-fired generation declined by 33% and 9%, respectively. The generation cost for imported coal rose by 13% to Rs 16.33/kWh, while Pakistan’s average power generation cost increased by 38% to Rs 10.75/kWh.