The Influence Of Russia And Ukraine War On Commodity Price Of Magnet Raw Materials
There is no doubt that the war between Russia and Ukraine has rattled global financial markets, with European stock markets tumbling, Russian stocks and bonds falling across the board and Brent crude oil breaking the 100-dollar mark. And Russia, Ukraine and the global important commodity resources, is the world’s important grain exporter in Ukraine, Russia in the global supply of crude oil, natural gas has been low, conflict of the two, is bound to affect the supply of global commodities, so let’s look, situation in Russia and Ukraine will be what kind of impact on the commodity market?
Crude oil and Natural Gas
Russia is an important oil and gas producer and exporter in the world, which is of great significance to the global energy market. Russia currently produces about 11 million barrels a day of crude oil, or about 11% of global production. At the same time, Russia is the main source of natural gas supplies to Europe. About 40% of Europe’s natural gas imports come from Russia, of which one-third is imported through Ukraine. Currently, Russia produces nearly 70 billion cubic meters of natural gas per month.
Crude oil and natural gas prices rose sharply today as the outbreak of war between Russia and Ukraine increased global market concerns about Russian crude oil and natural gas supplies. Brent crude for April delivery rose above $100 a barrel, up more than 6%, while European natural gas TTF rose more than 30% to trade at $40 per mmBtu.
As an important energy source for steel production, the rise in crude oil and natural gas prices will inevitably lead to the rise in steel production costs, so the prices of iron ore and steel will rise accordingly, and the prices of iron red, Ferrite and other materials surrounding the iron and steel industry will rise.
Coke steel, iron ore
Coke steel: black commodities are relatively less affected by external conflict events, mainly by their own supply and demand changes. If the overall mood of the financial market leads to a periodic pulse of decline, it is easy to form a periodic “gold pit.” In terms of specific varieties, the biggest impact is iron ore, followed by coal. China imports about 15 million tons of iron ore from Ukraine every year. The outbreak of war has a great direct and potential impact on iron ore supply. China imported 37 million tons of coal from Russia last year, accounting for about 30 percent of China’s coal imports. The outbreak of war has a potential impact on coal supplies. For thread and coke coke, because the import and export volume is small, the influence is relatively low.
Manganese silicon: Russia-Ukraine conflict has no effect on manganese silicon, manganese ore comes from Australia and South Africa, there is no import of manganese ore and manganese silicon from Ukraine, almost no direct impact on manganese silicon. In terms of iron ore, Ukraine exported 39 million tons of iron ore in 2021, of which 16.38 million tons were exported to China, accounting for about 1.46% of China’s imports, with little impact.