Steel prices increase against backdrop of Russia’s war in Ukrain

While the price of gold and oil have been on the rise since Russia invaded Ukraine, so too has steel, a commodity that is used in almost every facet of manufacturing.

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.”