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Friday, October 18, 2024 5:25 GMT
After Russia’s invasion of Ukraine and the resulting sanctions, the cost of metals and other construction materials in Lithuania has doubled. Now, suppliers from Africa are filling the gap.A record-breaking cargo arrived at the Port of Klaipėda last week: nearly 17,000 tonnes of rebar from Africa. This is not the first ship to bring metal from the continent.“Before the war [in Ukraine], we used mainly Russian, Belarusian metal because it was geographically convenient, but at the beginning of the war this metal was sanctioned and for two years now it has not been possible to supply metal to European markets, which has led to a search for new routes and new producers,” says Donatas Gelažauskas, director for commerce at Steel Core.Since Russia’s invasion of Ukraine, the cost of construction materials has more than doubled. Metal became a highly sought-after commodity. Businesses began to look for alternative suppliers and Algeria was chosen because of its price and quality.The chosen supplier, Algerian Qatari Steel, has been operating in Algeria for several years.“There is a quality standard and all rebars have to comply with and if they don’t, they’re unauthorised for use,” says Gelažauskas. “In this case, the products comply with the Lithuanian standards, but also with those of Sweden, Finland, Norway, Denmark, Germany, Poland, we’ve done a joint certification.”The Algerian company sells 50,000 tonnes of metal every year, but it wants to increase the volume four or five times.“We want to have our own centre in Lithuania, to export metal from Algeria to the Baltic and Scandinavian countries, and therefore we want to cooperate with Lithuanian business,” says Jusef Ahmed al Muhanadi, head of Algerian Qatari Steel.Over the course of four days, Klaipėda Container Terminal unloaded a record amount of rebar.“There are about 15 different types of rebar on this ship, and depending on the length, diametre, we have to sort it out, stack it according to certain requirements,” explains Vaidotas Šileika, general manager of Klaipėda Container Terminal.The products that arrived at Klaipėda Container Terminal are used in the construction of wind turbines and road construction. In Lithuania alone, about 200,000 tonnes of rebar are used.“Part of that cargo will be unloaded and distributed in Lithuania, the rest will be destined for the Baltic countries. We are becoming very much like a metal distribution hub,” says Šileika.The plan is to have rebars from Algeria shipped to Klaipėda once a month.