{"id":107530,"date":"2022-03-11T16:17:07","date_gmt":"2022-03-11T16:17:07","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=107530"},"modified":"2022-03-11T16:17:07","modified_gmt":"2022-03-11T16:17:07","slug":"russia-ukraine-war-uk-steel-prices","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/russia-ukraine-war-uk-steel-prices\/107530\/","title":{"rendered":"How will the Russia-Ukraine war impact UK steel prices?"},"content":{"rendered":"

As the Russia-Ukraine war continues to unfold, metal producers are reporting major price spikes as the conflict causes a domino effect on UK steel prices and the construction supply chain<\/a><\/h2>\n

According to the London Metal Exchange<\/a>, between February 23 and March 8, UK steel prices soared to great levels, including nickel costs, which increased by 97%, zinc by 16%, aluminium by 6.2%, and copper at 3.5%.<\/p>\n

Furthermore, it has been reported by British Steel<\/a> that the UK steel price has risen to \u00a3250 per tonne, and is predicted to further increase as the conflict continues and the demand rises.<\/p>\n

This is due to certain economic sanctions against Russia<\/a> by the EU which prohibits trading, and a prohibition on trade to certain Ukrainian regions, such as the non-government-controlled regions of Donetsk and Luhansk, as Ukraine\u2019s steel production halts due to the war.<\/p>\n

The London Metal Exchanged also announced its decision to cancel trading in all contracts in Nickel<\/a> earlier this week (March 8), due to high and volatile pricing, and a dangerously low stock environment.<\/p>\n

Russia dominates the global steel market as the world\u2019s fourth-largest steel exporter<\/h3>\n

As the world\u2019s fourth-largest steel exporter according to the International Trade Administration<\/a>, Russia is accountable for supplying steel to more than 150 countries and territories. This means that trading sanctions will have a detrimental impact on the construction supply chain<\/a>.<\/p>\n

The construction industry currently accounts for more than 50% of the world\u2019s steel demand and is used widely across the sector.<\/p>\n

The top uses of steel in the construction industry<\/h3>\n
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  1. \n

    Buildings<\/h4>\n<\/li>\n<\/ol>\n

    One of the most obvious uses of steel is across the housing and building sector. Most commonly, steel is used as a method of reinforcement in concrete structures.<\/p>\n

    As one of the strongest building materials, steel is popular due to its durability.<\/p>\n

      \n
    1. \n

      Transport<\/h4>\n<\/li>\n<\/ol>\n

      Steel is a required building material that is needed in transport construction and is used for bridges, rail tracks, and tunnels across transport projects.<\/p>\n

      A significant spike in UK steel prices could therefore seriously impact current and future proposed transport upgrades across the country.<\/p>\n

      3. Utilities<\/h4>\n

      Used in the production of fuel, power, and water utilities networks, steel is used for major infrastructure projects to transport water and gas through pipelines domestically.<\/p>\n

      \n

      Recent weeks\u2019 rises in ferrous scrap, iron ore and coal prices has led to 20-25% higher ordinary #steel<\/a> spot prices. Steel supply to EU is reduced but not alarmingly yet. Some import supply routes are closed. #Stahl<\/a> #industrie<\/a> #industry<\/a> #inflation<\/a> #Wirtschaft<\/a> pic.twitter.com\/Wq047X6Wxt<\/a><\/p>\n

      \u2014 Pekka Laukkanen (@20charts) March 10, 2022<\/a><\/p><\/blockquote>\n