Ukraine/Russia conflict supercharges PCI bull run

Russia's place amongst the largest seaborne metallurgical coal exporters is without question. Though the Ukraine/Russia conflict has many end-users questioning where these coals now fit into their blends. Of particular concern is Russia's position as a key PCI supplier to many global steel mills. Some regions are particularly vulnerable as they rely heavily on Russian cargoes. Sanctions have created a two tiered market with ex-Russian PCI selling at a significant premium to historical values. Prices are factoring in risk premiums but for how long. Russian PCI can be purchased at deep discounts with many caveats. Buyers are trying to pivot away from Russia though can they truly reduce their reliance.