Russia-Ukraine conflict, new car prices will continue to rise? | Russia-Ukraine conflict | Semiconductors | Catalytic converters | Neon

[Voice of Hope, March 1, 2022](Comprehensive compilation by our reporter Zhang Xin)The Russian-Ukrainian conflict is expected to put pressure on semiconductor supplies, further deteriorating an already weak supply of key auto parts, according to the Economic Times.

The prices of palladium and platinum, two important metals used to make catalytic converters in cars, have been rising over the past few weeks.

Russia is one of the world‘s largest suppliers of palladium. Markets are expected to face shortages of these metals as trade routes are hit and sanctions are imposed. This could mean delayed car deliveries.

On the other hand, aluminum, a major component of automobile manufacturing, is also exported in large quantities from Ukraine and Russia. Aluminium supply is also expected to take a severe hit. Transaction costs for the metal have risen by 20% compared to prices a few weeks ago.

In chip manufacturing, neon gas is one of the key raw materials for the lithography process, and Ukraine is the world‘s largest producer of this raw material. The U.S. relies on Ukraine for 90 percent of its semiconductor-grade neon gas, research firm Techcet estimates.

Responsible editor: Zhang Xin

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