The Russian-Ukrainian war has caused many German car manufacturers to suspend operations, and it was estimated that production might be reduced by 150,000 vehicles in March.

According to market sources, German steelmaker ThyssenKrupp is currently renegotiating supply contracts with the auto industry for this year. ThyssenKrupp's sales are mainly from this industry, hoping to pass on the higher cost of raw materials and remain reasonable profits by raising the contract prices, with an increase of around EUR 300-320/ton.

As for the steel mill's cost evaluation, the raw material cost of blast furnaces has increased by US$335/ton compared to January. However, the auto industry said it might be hard to accept the renegotiation, as the contract price in 2021 has hit a new high, rising by EUR 400-500/ton. It remained to be seen whether other mills will follow up and renegotiate prices.