Germany increases exports in June by over 23% year-on-year. CISA calls for tighter export restrictions on steel. Western economies are struggling with shortages of input products and labor – and can hardly save themselves from orders.
Germany boosts exports to above pre-Corona level
Strong demand from the United States and China, boosted German exports in June. For the first time since the start of the Corona pandemic, more products were exported.
Despite a lack of upstream products, which has hampered the full development of export opportunities, German sales abroad rose to almost 119 billion euros. An increase of 23.6% compared to June 2020.
The Association of German Chambers of Industry and Commerce (DIHK) estimates that the German economy will export 8% more overall in 2021.
China: CISA calls for stricter rules for steel exports
In a meeting on August 5, 2021, the Chinese Iron and Steel Association called for greater self-discipline on the part of domestic steel producers and stricter measures with regard to reducing steel exports.
For curbing overcapacity and achieving the government’s decarbonization targets, CISA has decided to set up a special working group to take care of these dual-control laws.
“In the current situation, great importance must be attached to the trend of excessive growth of steel exports, steel enterprises and various business units must effectively strengthen their self-discipline, and the industry import and export working committee must take action in this regard,” CISA demands in this regard.
Commodity markets are reorganizing
While markets in Asia are struggling to cope with the changes in China’s export and import policies, little has changed for the more Western economies. Very good data is being reported from Europe and the United States, and could even be much better if sufficient inputs and labor were available.
Western economies with problems in upstream products and manpower
This is a challenge that will continue over the coming months, given the attitude of the US Fed and the markets. US steel producers have already announced that they do not intend to expand production further, which is likely to result in a shortfall of 40 million tons of steel over the next two years. EU steel producers also appear to want to follow the policy of lower capacity utilization. Both are likely to contribute to continuing higher steel and stainless steel prices in the western economic area.
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