UK steel prices soar by 50% since Russia’s invasion of 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.’