Russia and Ukraine combined are the world’s second-largest steel exporters after China, with more than 40 million metric tons exported annually — the war between the two countries, which shows no sign of abating, is shocking the steel market and causing prices to rise.
European hot-rolled coil prices have exploded by nearly 40% over the past three weeks while the gains have been a bit more modest in the United States, growing by up to 8% since the invasion began in late February, according to Reuters.
Russia and Ukraine combined account for about a fifth of all steel imports flowing through the European Union. In addition to sanctions, prices are being affected by supply chain disruptions and other complications from the war.
“It’s certainly looking like prices will continue to rise in the short term. We're forecasting that prices will jump again by the end of this month and into April,” said analyst Kaye Ayub at consultancy MEPS International. “The supply side has been massively disrupted in Europe, and that will take quite a while to resolve.”
In Ukraine, which is the world’s 12th largest steel producer, the war has caused production to come to a grinding halt.
Further compounding the problem with rising steel prices is the problem with rising energy prices.
Europe depends on Russia for approximately a quarter of its oil imports and 40% of its natural gas, according to Robert Orttung, a research professor at the Elliott School of International Affairs at George Washington University. He pointed out the worldwide economic implications of the increasing escalation between Russia and Western Europe.
“This war is tipping from just a Russian invasion of Ukraine into an extremely global conflict that is going to have dramatic consequences for the whole economy,” he told the Washington Examiner.
https://www.washingtonexaminer.com/...se-against-backdrop-of-russias-war-in-ukraine
European hot-rolled coil prices have exploded by nearly 40% over the past three weeks while the gains have been a bit more modest in the United States, growing by up to 8% since the invasion began in late February, according to Reuters.
Russia and Ukraine combined account for about a fifth of all steel imports flowing through the European Union. In addition to sanctions, prices are being affected by supply chain disruptions and other complications from the war.
“It’s certainly looking like prices will continue to rise in the short term. We're forecasting that prices will jump again by the end of this month and into April,” said analyst Kaye Ayub at consultancy MEPS International. “The supply side has been massively disrupted in Europe, and that will take quite a while to resolve.”
In Ukraine, which is the world’s 12th largest steel producer, the war has caused production to come to a grinding halt.
Further compounding the problem with rising steel prices is the problem with rising energy prices.
Europe depends on Russia for approximately a quarter of its oil imports and 40% of its natural gas, according to Robert Orttung, a research professor at the Elliott School of International Affairs at George Washington University. He pointed out the worldwide economic implications of the increasing escalation between Russia and Western Europe.
“This war is tipping from just a Russian invasion of Ukraine into an extremely global conflict that is going to have dramatic consequences for the whole economy,” he told the Washington Examiner.
https://www.washingtonexaminer.com/...se-against-backdrop-of-russias-war-in-ukraine
