Did you know that Russia is the world’s largest exporter of Nickle? I didn’t either. Should you care? Yes, you should, if you make battery-powered toys.
Did you know that Russia is a major exporter of wood? I didn’t either. Should you care? Yes, you should if you make your toys out of wood.
Russia is, of course, a major exporter of oil. It also exports plastic. The removal of Russia from world trade due to embargoes by the European and North American nations is driving up the price of all these commodities.
The Russian invasion of Ukraine is horrific, and we should all applaud the use of economic weapons to end the war. The impact of our efforts will have an economic effect on all of us, and that includes the toy industry.
Nickle is a major component in batteries and, due to the war, its price just went through the roof. The commodity had been selling for an average of $20,000 a ton and suddenly, this week, jumped to $100,00 per ton. In fact, the London Metal Exchange had to stop trading due to the volatility. Expect the cost of batteries to increase dramatically.
Oil which was selling on the spot market for $88.22 as recently as February 1, 2022, is now priced at $119.26 per barrel. Some are anticipating it may hit $200 a barrel. Most plastic is made from oil, so its price increase is having, and will have an impact on the price of plastic toys.
Here is a list of Russia’s top ten exports.
3. Precious Metals
10. PlasticsRussia’s top 10 exports
Get ready for more inflationary pressures. The end is not in sight.