As the world started to recover after nearly two years of a global pandemic, the Russian invasion of Ukraine was unexpected and caused a series of unforeseen negative consequences. Both Russia and Ukraine are important exporters of goods and raw materials. As the war continues, it is expected for material prices to increase and even cause shortages of goods for certain periods of time.
But for what materials should you expect to pay more? And what are the industries that will become the most affected by the Russia-Ukraine war? This article provides answers to these questions, so keep reading to find out more.
Natural Gas and Oil Can Become More Expensive
Russia is one of the largest exporters of natural gas and oil in the world. It delivers vast amounts of these resources primarily to European markets as well as to China and India. As the war continues, it’s expected that some of these primary goods become more expensive. At the same time, the Western sanctions on Russia can also cause an aggressive response coming from the Russian government which might significantly increase the prices of natural gas and oil.
Aluminum and Copper from Russia Can Become Scarce
At the same time, both Russia and Ukraine are important exporters of aluminum, copper, iron, titanium, uranium and other goods. These materials are primarily used in the construction industry and as the war goes on, it is expected that the prices of these goods will increase. As a result, companies that are loyal clients of Ukraine and Russia might halt some of their projects and postpone the completion of various commercial and residential projects.
Steel Prices Have Skyrocketed
Steel is another important material used in construction nowadays. Ukraine is known to deliver high-quality steel products to European markets and to other parts of the globe. As most of Ukraine’s resources are concentrated on fighting Russian armies, chances are that the production of steel will significantly decrease. Even if steel is delivered to certain companies, it might take longer to fulfill demands and deliver goods on time. Construction companies should also expect an increase in steel prices for the same reasons.
Diesel Fuels Have Increased Dramatically
Resources coming from Russia and Ukraine are also used to create diesel fuels and other types of petroleum-based products for general consumers. Since the situation is extremely unstable in Eastern Europe, it’s expected that fuel prices will increase dramatically. Virtually any industry and transportation service is based on fuel to accomplish their goals and as the prices of this important resource go up, the prices of other goods will increase. Companies and civilians should expect to pay more for basic products and this increase in costs could last for a couple of months.
Although the Russia-Ukraine war doesn’t seem to end anytime soon, US Framing is committed to continuing its operations and delivering tailored construction and framing services to customers in need. Contact one of our specialists today to learn more about our services and explore our broad portfolio of completed projects.