Steel prices rising amid Russia Ukraine war

The war between Russia and Ukraine is having a direct impact on the prices of steel bars in Pakistan. For the first time in history the prices of steel rebars has crossed Rs 200,000 per metric ton mark due to sudden surge in the raw material cost in the international market.

According to Pakistan Association of Large Steel Producers (PALSP) the prices of primary raw material of the steel industry (scrap) have increased by $ 120 per ton from $550 to $670 in a span of a few days in the world market. One of the major factors for this sudden increase is the war between Russia and Ukraine. After the Russian invasion, Ukraine steel scrap prices witnessed an immediate surge in the international steel scrap market.

Russia and Ukraine are one of the world’s biggest producers and suppliers of steel. Russia and Ukraine account for 74 percent of the world’s Wire Rod exports and it is feared that commodity prices can further jump beyond current levels if the problem between the two countries persists. Russia and Ukraine combined export around 5 million tons of scrap annually, which is almost equivalent to Pakistan’s total scrap imports.

According to experts of the fields, this situation would be very unfavorable for the steel as well as the construction industry of the country as any further increase in prices of rebars is likely to suppress the demand of steel in the country.