The Suez crisis has caused a 150% increase in steel transportation costs

The average price for steel transiting the Red Sea for transportation by container ships rose from $1,200 per TEU (December 2023) to around $3,000 per TEU. After peaking at $5,300 per TEU in January, sources reported a gradual decline throughout February. In addition to the rising prices due to the Red Sea crisis, delivery times are also expected to change.

According to the sources, it takes 45-60 days to transport steel from any country in the Far East to Europe, while EU buyers are reportedly reconsidering tonnage purchases from Asia due to these reasons. Most of the steel exported to Italy and Europe passes directly through the Suez Canal.

Several Asian countries, including India, China, Vietnam, Japan, Taiwan, South Korea, Japan, Taiwan, India, China, Vietnam, Vietnam, Japan, Taiwan and South Korea export steel to Italy and the EU, and these countries exported 5.48 million tons of steel in 2023, sources noted. Non-EU countries accounted for 73.8% of the total steel imported into Italy and a similar trend was reported in the EU, with 16.14 million tons imported from the same six countries.

The situation in the Red Sea is widely reported to have crippled trade routes for Italy and Europe's manufacturing industry, and the crisis is also said to have had a major impact on the economic system.