"From 2.83 Million Won to 11.35 Million Won"… Shell Prices Quadruple Amid Ongoing Wars

Demand for Shells Soars but Supply Limited
155mm Shell Price Exceeds 10 Million Won

The demand for shells is soaring amid the Ukraine-Russia war that has lasted over 20 months and the Israel-Hamas war. As weapons manufacturers cannot keep up with the supply, shell prices have nearly quadrupled.

The U.S. financial daily Wall Street Journal (WSJ) reported on the 29th (local time) that competition to secure weapons is intensifying, especially among NATO member countries.

Most European countries, which are NATO members, are supporting Ukraine with various supplies including shells. Although weapons companies headquartered in Europe are producing shells, the demand for ammunition needed on the battlefield far exceeds supply, causing prices to rise.

On the 13th (local time), an Israeli military tank advancing toward the Gaza Strip border. [Image source=Yonhap News]

In particular, the price of 155mm shells, which have the highest demand, is said to have increased up to four times. Before the Ukraine war, the price of a 155mm shell was $2,100 (about 2.83 million KRW) per round, but it has risen to $8,400 (about 11.35 million KRW) in the past year. The 155mm shell is the standard caliber for Western artillery, including NATO.

With the escalation of the war between Israel and Hamas, further pressure is expected on the already limited weapons supply chain. Since Israel is not a NATO member, most Western European countries are unlikely to provide supplies directly to Israel. However, some NATO members such as the United States and Germany are supporting Israel with weapons.

155mm self-propelled artillery firing by the Israel Defense Forces [Image source=Yonhap News]

Regarding this, Eran Mortenson, Director of the Swedish Defense Materiel Administration, expressed concern, saying, "The production capacity of Europe and the United States is limited," and "The need for resources will only increase."

This concern was reportedly a major agenda item at the recent 'NATO Industry Forum' held in Sweden. At the forum, NATO Secretary General Jens Stoltenberg emphasized, "We need to increase production to ensure that we can guarantee (military supplies) when needed."

Despite the surge in weapons demand, companies are hesitant to make significant investments in facilities because the market conditions after the war cannot be guaranteed.

In this regard, Esa Rautalinko, CEO of the Finnish weapons company Patria, pointed out, "It is wrong for European governments to impose investment responsibilities before signing weapons contracts," adding, "Without a long-term outlook on demand, we cannot invest."

This content was produced with the assistance of AI translation services.