Steel futures' prices are up by over 7%, with aluminium setting new highs.

The price of rebar futures in China on March 3 was 4,985 yuan / ton (US$788.7 / ton), up more than 7% since Russia brought troops to Ukraine.

The price of aluminum futures on the London exchange, on March 3 was $3,824/ton, up 7.1% compared to March 2 and set a new record.

Rebar futures price in China on March 3 was 4,985 yuan/ton ($788.7/ton), up 2.2% from the previous day. From February 25, after Russia brought troops to Ukraine, the price of this item increased by more than 7%. This is the highest level since October 22, 2021.

Price movements of rebar. Source: Trading Economics

Steel prices rose on concern about supply disruption due to the war in Ukraine. Countries importing from Russia, Ukraine are looking for an alternative source from China. Russia accounts for about 10% of the world's steel import and export turnover, while Ukraine accounts for about 4%.

The European Union sanctioned Russian billionaires, including steel billionaire Alisher Usmanov, owner of Alfa Group Mikhail Fridman and billionaire Alexei Mordashov, who runs a large steel company in Russia. . These sanctions also affect the Russian steel industry.

The price of coal, the fuel used in steel production, is climbing steeply, also contributing to the increase in steel prices. On March 2, the futures price of coal in Newcastle (Australia) was at $ 400/ton, up 32.9% compared to March 1. Since the beginning of this year, the price of this item has increased by more than 100%. The war in Ukraine has increased the demand for coal for electricity, especially in European countries. In addition, Germany stopped buying gas from Russia to reduce dependence on Moscow and replace gas with coal. The above developments made the supply limited and pushed prices up.

Steel demand in China surged in March, partly due to the country's infrastructure investment policy. China tends to strengthen macro policies to stabilize the economy in the context of the real estate market going down. Industry experts believe that steel demand in China will increase in the second quarter as construction activities and investment in infrastructure will increase as China implements many economic stimulus measures.

Aluminum futures price on the London exchange, on March 3 was $3,824/ton, up 7% compared to March 2 and set a new record. From February 25, the price of this item increased by 13.5%.

Aluminum price movements. Source: Trading Economics

The aluminum market was greatly affected by the war in Ukraine. Russia produces about 6% of the world's aluminum and the war in Ukraine will affect Russia's exports of this metal, reducing supply, leading to an increase in prices. High aluminum prices will affect the construction industry, packaging and above all, the automotive sector.

Vietnambiz