ORLANDO, Fla. — The United States may not be within rifle scopes of the potential conflict between Russia and Ukraine, but American wallets could become collateral damage.
Mining and commodity analysts are predicting that a war between Russia and Ukraine, as well as an economic battle between global economic superpowers, could send the price of metals soaring around the world.
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“An armed conflict between the two countries could lead to one or both being cut off to foreign trade for an indeterminate amount of time, leading to supply shortages of steelmaking raw materials in the US,” a report by Argus Media, a London-based commodities analysis outlet, reported late last month.
Russia and Ukraine are exporters of iron and precious metals, and while neither dominate global trade, disruptions could cause ripple effects.
READ: Experts warn that the Russian-Ukraine conflict could impact prices in Central Florida
Cellphones are typically built with a number of those metals in certain components. Meanwhile, steel prices have already been on a tear, gaining roughly 6% since the start of the year. Its price is still below highs set in November, but well above pre-pandemic levels.
Locally, appliance distributors said any effect from a war would only add salt to an open wound.
“We’ve been experiencing significant price increases,” said Stu Kimball, president of Orlando-based Southeast Steel, blaming transportation and labor costs.
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Crosstown rival Appliance Direct owner Mark Salmon said prices for popular large appliances like washing machines were raised twice in 2021. A third increase hit at the beginning of February, and a fourth is expected in April.
Models that each store can get its hands on are now priced 25% above their pre-pandemic tags. Kimball said Bosch dishwashers were the hardest to get. His store is back-ordered until close to the end of 2022.
“We’ve got product — maybe not the exact product people want,” he said. “We have laundry, we have dishwashers. We’re getting orders in every day.”
READ: Ukraine-Russia crisis: What to know in the escalating crisis
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