The price of steel reaches new records in the preparation of others

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Steel benchmarks in Europe have returned to record highs as Brussels prepares to ban new imports from Russia as part of another package of sanctions, so supply of raw materials could be further constrained , and deliveries could be even more limited than at present, according to data compiled by Bloomberg.

Reference prices for hot-rolled steel rolls in Northern Europe rose 10% on Friday to € 1,435 per tonne, according to weekly data released by Kallanish Commodities Ltd. Prices for reinforced steel reinforcing bars have risen, also at a new all-time high.

New measures banning the entry of Russian-made finished steel products into the European Union are expected to take effect soon, and traders have raised prices in preparation for a reduction in supply.

The European Union is an important market for Russian steelmakers, most of whom are owned by Russian oligarchs, who are facing Western sanctions over Russia’s invasion of Ukraine.

The European steel market is already facing problems due to the disappearance of the supply of exports from Ukraine, the fifth largest supplier in Europe.

The rise in energy prices has also affected operations at some steel mills on the continent, further reducing supply.