European steel prices hit new record on prospect of Russian ban

European steel prices surged back to a record as Brussels prepares to ban imports from Russia as part of more sanctions, threatening to further tighten supply.

Benchmark rates for hot-rolled coil in northern Europe jumped 10% to 1,435 euros ($1,583) a ton on Friday, according to weekly data from Kallanish Commodities Ltd. Prices for rebar also rose to a fresh all-time high. 

New measures banning finished Russian steel products from entering the European Union are expected to take effect soon and traders have hiked prices as they brace for reduced supply. The EU is a key market for Russian steelmakers—most of which are owned by Russian billionaires—and officials are trying to further pressure Moscow following the invasion of Ukraine.

The market was already dealing with the loss of Ukraine’s exports, normally the fifth-biggest supplier to Europe. Sky-high energy costs have also disrupted operations at some mills on the continent, curbing supply.