Coking coal imports to Ukraine slide 2% in February

Ukraine’s coking coal imports slid 2% m/m to 650 kt in
February, according to Concorde Capital’s analysis of a Mar. 18 report by
Interfax-Ukraine, which cited Ukrmetallurgprom, an industry association.

In 2M20, coking coal imports dropped 30% yoy to 1.31
mmt.

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

Dmytro Khoroshun: The Russian
restrictions on coking coal exports to Ukraine imports seem unlikely to become
a bottleneck for Ukrainian iron and steel production in the near future.

Nevertheless, given the recent reports on coronavirus
hurting production at various mining companies worldwide, it is possible that
Ukraine’s chronic reliance on imports of coking coal will become a problem
(insufficient volume, high prices) at some point during the pandemic.