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Russia-Ukrine Conflict Effect for Machining

Oil prices rise, costs rise

Good for new energy construction machinery

As we all know, Russia is an important energy exporter and grain exporter. In terms of energy, Russia sends natural gas and oil to the world, especially oil, of which Russian oil exports account for more than 10% of global exports. The conflict between the two countries will inevitably increase the international oil price. On March 2, the international oil price reached a new high, with Brent crude oil standing at $110/barrel, continuing to hit a new high since 2014.

As my country’s oil that is stuck in the neck, in the case of mainly relying on imports, the rise of international oil prices will inevitably lead to the rise of domestic oil prices. For users in China’s construction machinery industry, rising oil prices will inevitably lead to an increase in the cost of fuel vehicles, which is the most direct and most helpless.

At the same time, we must also see that rising oil prices, as a catalyst, may force more users to choose new energy construction machinery, especially electric products. Significant boosting effect, after all, the penetration rate of domestic electric construction machinery is less than 1%, and the industry has a huge space for development.

Mineral problems affect short-term fluctuations in steel prices. As an important raw material, the production of construction machinery products requires a large amount of steel. In recent years, the price of steel in my country has risen significantly, and the construction machinery industry has also carried out several rounds of price increases. So how much will this “Russian-Ukrainian conflict” affect steel prices? Russian-Ukrainian conflict officially broke out, the war situation became increasingly fierce, and the Western sanctions against Russia were also strengthened. 

The conflict has dealt a major blow to the economies of Russia and Ukraine and the global supply chain, which are recovering from the new crown epidemic. At the same time, the sanctions against Russia by many Western countries involve industrial and supply chains such as goods, services, transportation, finance, energy, and technology. Fang also launched a series of countermeasures, and the two sides fell into a tug-of-war. The already weak global economy is adding to the woes.

The Guangzhou-Guangdong-Hong Kong-Macao Greater Bay Area Research Institute team analyzed the impact of the Russian-Ukrainian conflict on the global economy and key industries, including aerospace, defense, automotive, banking, construction, FMCG, insurance, medical devices, mining, oil and gas, electricity , technology, sports and other industries. The report also analyzes the impact of the Russian-Ukrainian conflict on leading companies in various industries around the world. (The full text of this report is more than 30,000 words and the printed version is 111 pages. “Global Industrial Development Research” is aimed at government, universities, enterprises and other institutional users. “Greater Bay Area Research Institute” background message: institution name – name – title – contact information.)