European steel prices soared to a record high as Brussels prepares to ban imports from Russia as part of sanctions that threaten to tighten supplies even further.
Indicative rates for hot rolled coil in northern Europe rose 10% on Friday to Euro 1,435 ($1,583) per tonne, according to weekly data from Kallanish Commodities Ltd. Rebar prices also rose to an all-time high.
New measures banning finished Russian steel products from entering the European Union are expected to come into effect soon, and traders have raised prices as supplies prepare to dwindle. The EU is a key market for Russian steelmakers, many of which are owned by Russian billionaires, and officials are trying to put more pressure on Moscow after the invasion of Ukraine.
The market was already grappling with the loss of exports from Ukraine, normally Europe's fifth largest supplier. High energy costs also hampered the operations of some factories on the continent, constraining supply.
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