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Steel and steel tube mills in Europe, especially in Eastern Europe, largely depend on feedstock from Ukraine and Russia, such as raw materials, billets and scrap. The disruption in these specific supply chains has caused a strong price increasing effect. Some concrete figures:
- The price of Western European coils has increased by 50% since Russia invaded Ukraine.
Before the war, Russia supplied some 170,000 tons of coils per month to Europe. This shortage cannot immediately be compensated by producers in other countries. Fear of scarcity has driven the coil prices up to unprecedented levels in the past few weeks. - Scrap prices in Europe have increased by more than 30%. Combined with a growing lack of available transport, this will lead to scrap shortages as feedstock for steel producers.
- Russia is one of the largest nickel suppliers in the world. Since the invasion, the nickel price has exploded such that many producers of stainless steel material have stopped quoting. Last week, the nickel trade has even been suspended.
Energy costs
Before the Russian invasion in Ukraine, prices of oil, gas and electricity were already rising fast, a trend that has only intensified since. Steel production requires a lot of energy, so the impact on prices is huge. At this moment, it leads to steel and pipe producers suspending their production completely or intermittently, because energy costs are no longer affordable.
Transport shortage
In Europe we are facing increasing problems in the transport sector. The number of available truck drivers has decreased, affecting the availability of trucks. Together with the high fuel cost and higher container tariffs, transportation costs are strongly increasing.
Availability and prices of tubes, fittings and flanges
For the time being Van Leeuwen has enough stocks to supply our loyal and appreciated customers. We make maximum use of our worldwide procurement network to avoid disruptions and secure ongoing material supply at best possible prices. For example, we are busy securing stock replenishments from suppliers in Asia and South America.
Because of all the above developments we have adjusted our prices a few times already. We inform our customers in a timely manner of obvious consequences that affect their business. Our customers can get in touch with their account manager at any time to discuss this unprecedented situation.
Procurement Manager
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Energy costs
Before the Russian invasion in Ukraine, prices of oil, gas and electricity were already rising fast, a trend that has only intensified since. Steel production requires a lot of energy, so the impact on prices is huge. At this moment, it leads to steel and pipe producers suspending their production completely or intermittently, because energy costs are no longer affordable.
Transport shortage
In Europe we are facing increasing problems in the transport sector. The number of available truck drivers has decreased, affecting the availability of trucks. Together with the high fuel cost and higher container tariffs, transportation costs are strongly increasing.
Availability and prices of tubes, fittings and flanges
For the time being Van Leeuwen has enough stocks to supply our loyal and appreciated customers. We make maximum use of our worldwide procurement network to avoid disruptions and secure ongoing material supply at best possible prices. For example, we are busy securing stock replenishments from suppliers in Asia and South America.
Because of all the above developments we have adjusted our prices a few times already. We inform our customers in a timely manner of obvious consequences that affect their business. Our customers can get in touch with their account manager at any time to discuss this unprecedented situation.
Back to Index
Procurement Manager
- The price of Western European coils has increased by 50% since Russia invaded Ukraine.
Before the war, Russia supplied some 170,000 tons of coils per month to Europe. This shortage cannot immediately be compensated by producers in other countries. Fear of scarcity has driven the coil prices up to unprecedented levels in the past few weeks. - Scrap prices in Europe have increased by more than 30%. Combined with a growing lack of available transport, this will lead to scrap shortages as feedstock for steel producers.
- Russia is one of the largest nickel suppliers in the world. Since the invasion, the nickel price has exploded such that many producers of stainless steel material have stopped quoting. Last week, the nickel trade has even been suspended.
Steel and steel tube mills in Europe, especially in Eastern Europe, largely depend on feedstock from Ukraine and Russia, such as raw materials, billets and scrap. The disruption in these specific supply chains has caused a strong price increasing effect. Some concrete figures: