Metal Markets Brace for Even Tighter Supply as Russian Exports Sink

Russia’s invasion of Ukraine has prompted buyers of Russia’s industrial-metal to pull back, causing the country’s exports to crumble. Since the invasion began, Russia’s top steelmakers have seen exports drop and nickel exports have decreased as well. While the reaction of importers differs from one country to another, Germany has terminated almost all steel purchases.

Russia is one of the top five global producers of steel, nickel and aluminum, which makes the disruption of trade even more problematic for the markets, already short on supply. Although metals have not been directly targeted by sanctions, prices are soaring on the concerns about payment to suppliers while banks are reluctant to finance Russian commodity exports.

Russia’s metal exports are falling amid buyer hesitancy regarding sanction uncertainty and escalation. Other than Russia, deliveries from Kazakhstan and Uzbekistan have also been dropping which is an additional cause for concern that markets will see accelerated tightening in the short term.

Nickel futures on the London Metal Exchange climbed as much as 3% on Monday before losing gains and closing the day 0.3% lower at $24,282 per metric ton. Aluminum also surged as much as 5% to a new record, before easing to a 0.3% hike, at $3,368.50 per ton.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Germany’s Policy Shift to Reduce Reliance on China Rattles Business

After German economy ministry issued last month a proposal to screen all company investments going into China as part of a raft of new measures, German business leaders were not happy. While the investment proposal was soon shelved following the uproar from the business, senior business leaders did not hide their frustration in a September meeting with Economy Minister Habeck. They argued that they hadn’t been sufficiently consulted on proposals to make business with China less attractive that could have big repercussions for German firms. 

New U.S. Sanctions to Prevent Russian Military from Evading Export Controls

The U.S. Treasury Department announced new sanctions on Russia, including a global network of individuals and shell companies that help Russian military evade export controls of advanced technology to Russia. The department says Moscow based Serniya Engineering is at the center of the network and operates under the direction of Russia’s intelligence service. 

Washington Urged Germany no to Give Controlling Stake to China in Hamburg Port

The United States has been working with European officials to ensure any investment from China in strategic sectors that raise security concerns are scrutinized carefully and appropriate steps are taken. The move came after Chinese shipping company Cosco was about to take a controlling stake in the Port of Hamburg, Germany’s biggest. The final deal allowed Cosco to buy a stake under 25%, which denies the company the status of controlling minority. It also removed the requirement of a German Cabinet approval, which would have been complicated because of opposition from Greens and liberal-run ministries.

Stay informed

error: This content is protected !!