Bradford Laser Cutting have taken into consideration the news over the last few weeks with fuel and the war. As many of you are aware, the news has been flooded with two things; The conflict between Ukraine and Russia, and the skyrocketing fuel prices. The hike in prices have left people resorting to browsing the internet daily to find the most cost-effective place to buy fuel and forcing more conscious decisions about when and where to fill up their vehicles. With Russia being a major exporter of crude oil, the country’s invasion of Ukraine has pushed up the prices for the commodity so high that the rise in fuel costs is more concerning than ever. However, the price of fuel is not the only issue to be concerned about. The conflict between Russia and Ukraine may lead to an increase in costs in other areas too, for example: food, electronics, and raw materials such as steel. With the previous rise in steel prices over the last few years due to Covid-19 and Brexit, the conflict has bought upon new heights to the price of steel and is showing no signs of stopping.
Russia and Ukraine are the 4th and the 12th largest steel manufacturers in the world. At present, Ukraine’s largest steel producers, Metinvest Holding LLC and ArcelorMittal SA have been forced to halt production. Russian Steel firms are also facing their own issues, because of the sanctions imposed on Russia by Western nations. Despite demand for the metal remaining unchanged, problems within the supply chain have led to a huge scarcity, resulting in the hike in prices. In addition to this, Russia is part of the top three largest nickel producers in the world, with Nickel being a key component used in the production of stainless steel.
The rise in fuel prices, not only have an impact on how people get to work and everyday necessities, but also has an impact on the price of imports and everyday items. With a majority of Steel being imported from overseas, and the rising cost of fuel, wholesale steel suppliers have opted to raise their prices to offset the cost increase.
Despite the war having a significant impact on the price of steel, there are opportunities for other steel exporting countries such as India and Germany, to overtake the market, and produce steel in large quantities. Though the threat of their being a steel shortage in Europe, for the time being businesses are still trying their best to keep everything at a reasonable cost for their customers, and hopefully peace will be restored sooner rather than later.