Russian invasion of Ukraine exacerbates high prices and long lead times

Steel producers say the Russian invasion of Ukraine is to blame for recent price increases and extended lead times.

British Steel has hiked the price on steel sections by £250 per tonne, blaming the war for disruption to trade and high levels of volatility in the prices of energy and commodities.

Furthermore, the firm has said it will only be releasing booking capacity in the first two weeks of April, for production to April 16. After that, prices could rise again.

It comes as prices and lead times were already higher and longer than usual as a result of the pandemic.

The director of one RIDBA member has advised the association that one of their orders has been pushed back to 2023.

Costs relating to steel plates have also risen with prices going from around £1,000 per tonne to £1,400 per tonne.

Meanwhile, some firms are highlighting issues around supply with some steel mills refusing to take orders.

Both Ukraine and Russia produce steel billets which are used as raw feedstock.

In the latest Construction Leadership Council statement, it has been suggested that “sanctions against individuals with links to the regime in Russia and firms with Russian ownership may affect the UK supply chain.”

RIDBA welcomes the thoughts of its members on this important issue. Email