Eastern Europe

A series of air strikes targeting energy systems left several areas of Ukraine without electricity and heating. Given the severe winter, this was a real challenge for households and businesses. Several foundries reported running only a limited number of furnaces based on how many could be supplied with generator power.

The harsh weather and temperatures below -20 degC have significantly impacted scrap generation. Transportation is also difficult, not only for inland trucking but also at sea ports where winter winds and the low temperatures are preventing cranes from loading and unloading and even ships from entering harbours. As a result, many vessel departure dates are being postponed.

The weaker US dollar, severe winter conditions and recent LME volatility are continuing to disrupt Russia’s export activity. Businesses are awaiting the 20^th sanctions package against Russia currently being prepared by the EU and expected to be announced at the end of February. Although there has been no official comment from the European Commission as yet, it is rumoured that the sanctions will target imports of copper, platinum, rhodium and iridium.