The Ukraine-Russia war has threatened steel products exports, hitting the European steel supply and causing the domestic steel price to increase by 22% last week, a new high since last August.

Some market participants indicated that the European steel mills would adjust prices, which gave rise to a steel market rally that is difficult to subside in the short term.

In addition, steel mills planned to reduce production due to a shortage of steel supply and rising energy costs, which caused the market situation to worsen gradually.

At present, ArcelorMittal Kryvyi Rih and Metinvest Holding in Ukraine have shut down their operations due to the war; meanwhile, Russian steel mill Severstal PJSC has also suspended sales to Europe.