Ukraine imports of Russian coking coal to recover in July

Russian exporters of coking coal obtained permits to export
500-550 kt of the material to Ukraine in July, according to a July 25 report by
Metal Expert. The industry consultancy estimated that in June, Russian exports
of coking and PCI coal to Ukraine amounted to only 30 kt due to restrictions introduced by Russia in April.
Ukraine’s normal consumption of Russian metallurgical (coking and PCI) coal is
600-800 kt per month, according to Metal Expert.

As a result of June’s disruptions in coal supplies,
Ukrainian importers of metallurgical coal turned to alternative suppliers from
the U.S., Canada, Kazakhstan, Indonesia and Australia, Metal Expert said. This
caused imports from Russia to remain low in the first two weeks of July at 164
kt, despite the permit issue having been solved, the consultancy noted.

Dmytro Khoroshun: We cautiously conclude that the Ukrainian consumers of metallurgical
coal, including the largest steelmaker Metinvest (METINV), will not experience
severe material shortages despite the ongoing Russian restrictions.