Coking coal imports to Ukraine drop 18% in January

Ukraine’s coking coal imports dropped 18% m/m to 660
kt in January, according to Concorde Capital’s analysis of a Feb. 12 report by
Interfax-Ukraine, which cited Ukrmetallurgprom, an industry association.

Recall, in April 2019, the Russian government
decided to restrict exports of coal, including
coking coal, to Ukraine starting from June 1, 2019, allowing such exports only
under permits issued by Russia’s Ministry of Economic Development.

Dmytro Khoroshun: Coking coal
imports seem unlikely to become a bottleneck for Ukrainian iron and steel
production in the near future. Rather, it is the dire situation at the world
steel markets that is limiting Ukraine’s iron and steel exports and production
volumes, and therefore the demand for coke and coking coal.

Ukrainian export iron and steel prices stabilized in
early November and had been rebounding until mid-January, but the situation
with the coronavirus in China might depress these prices in the near future.

However, if China decides – as a response to the
economic slowdown due to the coronavirus – to stimulate its construction of
infrastructure and especially residential real estate, the demand for coking
coal in Ukraine might rebound eventually.