European steel prices rose to record levels after Brussels announced a ban on rolled metal imports from Russia as part of new sanctions, threatening to further tighten supply in a scarce market.
Base rates for hot-rolled coil in Northern Europe jumped 10% to €1,435/t on Friday. Rebar prices also rose to a new all-time high.
New measures banning the import of finished Russian steel products into the European Union are expected to come into force soon, and traders have raised prices in preparation for supply cuts. The EU is one of the key sales markets for Russian steel producers.
The market has already faced the loss of Ukrainian exports, which is the fifth largest supplier to Europe. Incredibly high energy costs have also disrupted some factories on the continent, limiting supplies.
Earlier in Turkey, representatives of the steel industry said they were ready to increase exports to Europe, replacing Russia, and plan to earn an additional billion dollars from this.
