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Russian President Vladimir Putin has recognized two separatist, pro-Russian regions (Luhansk People's Republic and Donetsk People’s Republic) of eastern Ukraine as independent states. Putin also ordered troops into these regions. US President Biden will sanction both regions, according to a press release by White House Press Secretary Jen Psaki. The EU and UK are preparing sanctions on Russia. Both Donetsk and Luhansk are key strategic steel and iron ore production regions of Ukraine, as seven of the twelve steelmaking plants are in these two regions, according to UKRMETALURGPROM, Ukraine’s metals association. According to the association, in 2021 Ukraine produced 19.08 million mt of metal products of which to 15.12 million mt, or 79.2% was exported. In 2021, the main markets for Ukrainian steel products, were EU-27 (35.0%), other Europe (19.4%) and NAFTA (9.7%). Ukraine is the sixth-largest supplier of steel to the EU, according to the European Steel Association The most immediate effect of slower supply is on the European market, but the global nature of the steel market would likely force Europe's purchases into other regions. Loss of steel supply would test supply chains and prices beyond Europe. (2/22/22)
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02/16/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 02/15/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference) 11/30/2021: Will the Omicron COVID Variant Impact South African Metals Production or Exports? |
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Important Headlines & Economic Data |
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AISI Steel Capability Utilization Rate Investing.com Economic Calendar 2/21/2022: Biden responds with limited sanctions after Putin recognizes breakaway Ukraine regions 2/21/2022: Statement by Press Secretary Jen Psaki on Russian Announcement on Eastern Ukraine |
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| Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.
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