Ukraine coking coal imports rebound 22% m/m in July

Ukraine’s coking coal imports jumped 22% m/m to 780 kt
in July, according to an Aug. 15 report by Interfax-Ukraine, which cited
Ukrmetallurgprom, an industry association. The 7M19 imports were 6.45 mmt, a 6%
yoy drop.

Recall, in April the Russian government decided to restrict exports of Russian 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 rebounded in July likely due to the easing of the Russian restrictions reported earlier.

Typically, Ukraine imports about 1 mmt of coking
coal a month, so the June (640 kt) and July (780 kt) import volumes were below average. Although some of
this decrease in imports was likely due to Ukraine’s heavy maintenance program
of blast furnaces in June-July, including at Metinvest (METINV), Russia’s restrictions on coking coal exports into
Ukraine have the potential to depress Ukraine’s iron and steel production
volumes in the coming months.