War pushes UK steel prices up by 50%

UK steel prices have soared by 50 per cent since Russia invaded Ukraine due to a surge in demand and producers absorbing higher energy prices.

The war has also led to buyers seeking alternatives to sourcing from Russian steel plants.

A ton of rebar steel, which is used in construction, was worth £841 in February but estimated to be worth £1,298 this month, according to Kallanish Commodities. Britain’s steel industry has struggled for more than a decade as cheaper Chinese steel has flooded the global market. The taxpayer was forced to keep British Steel afloat for months when it collapsed in 2019 before it secured a Chinese buyer.

Experts said they expect prices to fall in the coming months, possibly to pre-war levels by the year end.

Matthew Watkins, steel analyst at CRU Group, said: ‘This was a spike not a plateau. We’re moving into a phase where prices are dictated more by logic and less by emotion and panic.’