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.