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Ukraine-Russia conflict drives up steel price
The conflict between Ukraine and Russia, the worldâs two largest iron slab makers, has affected the global supply of iron slab resulting in rising prices that will eventually lift the price of hot rolled coil
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he conflict between Ukraine and Russia, the world's twolargest iron slab makers, has affected the global supply of iron slab resultingin rising prices that will eventually lift the price of hot rolled coil.
Steel maker PT Krakatau Steel announced the price of iron slab had increased to between US$25 and $35.
Ukraine and Russia's combined output reaches 13.5 million tons, or 54 percent of the world's demand of 25 million tons.
The conflict will potentially also affect the price of hot rolled coil from China and other countries in 2014.
According to the August 2014 World Steel Dynamic report, the price of hot rolled band from China is forecast to rise to $25 to $30 per ton.
Krakatau senior vice president Iip Arief Budiman said in a statement that the domestic market would improve in accordance with global market conditions. Aside from the global factor, the improving domestic market was supported by the trade ministerial decree on steel import requirements.
'The market price will return to normal due to fair competition,' said Krakatau marketing director Yerry in a statement made available to The Jakarta Post.
The market also shows positive sentiment as it expects the incoming government to carry out numerous infrastructure projects.
