Ukraine coking coal imports stable in July-September

Ukraine’s coking coal imports inched up 3% m/m to 780
kt in September, according to an Oct. 11 report by Interfax-Ukraine, which
cited Ukrmetallurgprom, an industry association. In August, Ukraine’s coking
coal imports slid 3% m/m to 760 kt from 780 kt in July, the report said. The
9M19 imports were 8.06 mmt, a 9% yoy drop, according to Interfax-Ukraine.

Recall, in April 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: Coking coal
imports have been stable during the third quarter, and the volumes should be
sufficient for the Ukrainian steelmakers, considering the current low prices at
the world steel markets and the possible decrease in demand due to a Ukrainian
iron and steel production slowdown in the coming months.

Recall, Dniprovskyy Steel, a Ukrainian iron and
steel producer and a partner of Ukraine’s largest steel producer Metinvest
(METINV), decided in early October to keep several of its capacities idle due to unfavorable
steel markets. Also, Dnipro Metallurgical Plant (a part of DCH group owned by
Oleksandr Yaroslavskiy) announced it will stop producing steel altogether from
early October.