UK steel prices soar by 50% since Russia invaded Ukraine due to surge in demand and producers absorbing higher energy prices
UK steel prices have soared by 50 per cent since Russia invaded Ukraine due to a surge in demand and producers absorbing higher energy prices.
The war has also led to buyers seeking alternatives to sourcing from Russian steel plants.
A ton of rebar steel, which is used in construction, was worth £841 in February but estimated to be worth £1,298 this month, according to Kallanish Commodities.
Feeling the heat: A ton of rebar steel, which is used in construction, was worth £841 in February but estimated to be worth £1,298 this month
Britain’s steel industry has struggled for more than a decade as cheaper Chinese steel has flooded the global market.
The taxpayer was forced to keep British Steel afloat for months when it collapsed in 2019 before it secured a Chinese buyer.
Experts said they expect prices to fall in the coming months, possibly to pre-war levels by the year end.
Matthew Watkins, steel analyst at CRU Group, said: ‘This was a spike not a plateau. We’re moving into a phase where prices are dictated more by logic and less by emotion and panic.’