The Ukraine crisis inevitably is affecting raw materials as Ukraine and Russia are major steel producers including those materials surrounding steel production, like iron ore, energy and transport.
As we commented in our recent steel price update, prices had begun to stabilise across many types of steel and were not rising as fast. However, in the past week, we saw prices on some grades like Hot Rolled steel rise steeply (+20%). At the start of this week, prices have been rising further. Additional volatility surrounding availability driven by reducing production and difficulties in transport are also putting upward pressure on prices.
At ADS we are advising customers to look forward and place forward orders where they can. Whilst we are doing everything we can to mitigate rising prices, we feel customers need to be aware of the daily changing situation.