Japanese Manufacturers are looking for alternative raw material sources to Russia-Ukraine

Japanese manufacturers will seek alternative sources of raw materials due to the Russia-Ukraine war.

As the Russia-Ukraine war disrupted production and logistics, Japanese manufacturers began to explore alternative sources of Russian raw materials. Russia and Ukraine together account for five percent of global steel production. Production and logistics were interrupted by the occupation, which raised supply concerns. Steel prices rose in Southeast Asia and Europe.

Nippon Steel Deputy General Manager Shinichi Nakamura said recently that the company plans to increase its purchases from Australia, Brazil and elsewhere if the war continues.

"If the situation prolongs, the raw materials we get from Russia and Ukraine will have to be procured through alternative means," he said.

Nippon Steel imports iron ore from both Russia and Ukraine, and coking coal from Russia. The two countries account for about 14 percent of the company's total iron ore pellet imports.

JFE Steel imports 18% of its coking coal from Russia. It is also considering alternative procurement options such as Australia and Canada.