The next round of government measures to replace capacity and control emissions is starting in Tangshan, China. 25 steel producers must shut down plants. Chinese Chromium up almost $500 per ton on June 1. Industrial metals in stronger demand in the United States. And US are reporting the longest lead times since 1987!
25 steel producers in Tangshan must shut down plants
The Tangshan Municipal Bureau of Ecology and Environment held a meeting on May 23 to discuss, among other things, in-depth inspection of steel enterprises, capacity replacement, overall emission reduction, and transformation and upgrading. As for capacity replacement alone 25 steel producers are to shut down 12 blast furnaces as well as 8 converters, and 29 sintering machines before autumn winter; 22 other companies have to reduce total emissions by at least 30% per month.
Facts, figures, data: Chromium sprints $500 per tonne
- As of June 1, 2021, the price of 99% chromium in China has increased by nearly $500 per ton.
- Three-month aluminum contracts on the SHFE are trending upward.
- Today’s nickel price is showing stability so far on SHFE and LME.
Industrial metals: demand increases in the United States
Deutsche Bank analysts believe that U.S. copper demand will exceed Chinese demand in 2021 for the first time in 20 years. Due to the extensive infrastructure program, the United States could assert itself as a price-determining factor in the medium term and thus further increase the price of the industrial metal overall.
US: Longest lead times since 1987
The Institute for Supply Management (ISM) reports that manufacturers of 5 of the 6 major industries (including fabricated metal products) in the United States reported in May 2021 the longest delivery and lead times since 1987.
Deliveries slowed at a faster rate compared to the previous month
“Supplier labor, materials and transportation constraints are not expected to diminish in the second quarter, putting further strain on panelists’ production plans and raw-materials inventory accounts,” Timothy R. Fiore, chair of ISM, says. “Production material lead times are at the highest level since January 1987 when we began recording lead times.”
- Stainless Espresso: Waiting is not an option at present!
- Stainless Espresso: Available cargo space top trade topic again
- Stainless Espresso: Is China setting the pace for CO2 reduction?
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.