The recent escalation of tensions between Russia and Ukraine will affect global economic recovery and bring uncertainty to overseas steel supply and demand. Russia is one of the world’s leading steel producers, producing 76 million tons of crude steel in 2021, up 6.1% year on year and accounting for 3.9% of global crude steel output. Russia is also a net exporter of steel, accounting for about 40-50% of its annual output and a large share of the global steel trade.

Ukraine will produce 21.4 million tons of crude steel in 2021, up 3.6% year on year, ranking 14th in the global crude steel output, and its steel export proportion is also large. Export orders from Russia and Ukraine have been delayed or cancelled, forcing major overseas buyers to import more steel from other countries.

In addition, according to overseas media reports, western countries on Russia sanctions further aggravate the global supply chain tension, involving the automobile manufacturing industry, many global automobile manufacturers temporarily shut down, and if this situation continues, will also bring impact on steel demand.