The political tension between Russia and Turkey, following the shooting down of a Russian warplane by a Turkish fighter jet on November 24, is likely to put pressure on the global steel market, further depressing prices, the Bangkok Post has reported, citing the ASEAN Iron and Steel Council (AISC).
According to the Bangkok Post, AISC chairman Wikrom Wajracupta said the political conflict between the two countries could lead to a series of trade bans, potentially leaving a steel surplus to weigh on the market.
“Russia was a big exporter of steel slab, while Turkey was a leading importer to feed its domestic steel industry. With a trade ban, Russia would have to export its steel to other countries to offset the loss of Turkish business, adding pressure to a global steel market already reeling from excess Chinese supply,” Wajracupta stated.