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Moody's Investors Service has said that large coal-importing nations, including India, will look to ramp up the output of domestic coal to strengthen energy security and lessen dependence on the import of fossil fuels. The government has recently mandated Coal India (CIL) to import coal as an emergency measure to avoid a shortage of coal for the country's power utilities and build up buffer stock.

It said Coal India targets to increase production by around 12 per cent in the current year. The state-owned firm accounts for over 80 per cent of India's coal output. Further, it said that metallurgical and thermal coal prices will remain high, but below recent peaks. However, it added the supply constraints were easing.

Besides, it noted prices for copper, zinc, nickel and aluminium reflect low inventories and supply risk related to Russia. Supply, which was tight even before disruptions from the military conflict, will remain constrained. It added steel and raw material prices have begun to soften as panic buying recedes, supply-chain issues reduce global demand, COVID-related lockdowns reduce consumption in China, and inflationary cost pressures and higher interest rates weigh on sentiment and economic growth.