August 11, 2021 – After the market correction at the start of the week, the market has regained its footing and is currently pointing upwards again. Further production cuts of steel and aluminum are reported from China. In addition, there is still a possible export tax on flat steel, which further restricts supply. In the United States, HRC and aluminum are climbing to new record highs. And for Europe, the steel industry foresees a continuing steel shortage and high prices.
China: Tangshan has to further restrict crude steel production
One of China’s most important steel producing regions, Tangshan, will have to restrict crude steel production for the 2022 Winter Olympics. This is to ensure that good air quality is maintained. To do so, steel output will be reduced by more than 12 million tons in the run-up to the Games.
Aluminum smelters in China’s Guangxi must reduce production
Aluminum smelters in the Guangxi region have been asked to further significantly reduce energy consumption by August 15. They are to save at least 30% electricity. The region produces more than 1.9 million tons of aluminum per year and is considered a major aluminum supplier.
Uncertainties over possible export tax on flat steel
Further uncertainty over a possible new Chinese export tax on steel, has kept trade in cold-rolled coil and hot-dipped galvanized flat steel products low. Chinese steel products that would otherwise have been exported are now more likely to be sold domestically by steelmakers and distributors.
US HRC index at new high
US HRC prices climbed to a new high of over $1,893 per ST on Tuesday, August 10, 2021.
Continued strong steel and stainless steel market expected in Europe
According to press releases from the past few days, the European steel industry continues to see a strong steel and stainless steel market in the coming months. Steel shortages and high prices are expected to continue.
Shanghai Base Metals largely up across the board
After, we reported yesterday, the U.S. Senate made a key decision regarding the Biden administration’s upcoming infrastructure package, metals stocks on the SHFE and LME rose across the board. Especially aluminum, copper and lead are among the winners. Nickel also moved up. US aluminum premiums also set another record.
Source: lme.com, shfe.com.cn, dce.com.cn
Copper: Strike looms at the world’s largest copper mine
In copper, things could get interesting in the near future. The world’s largest copper mine, with 6% of total global production, is facing a possible new strike, according to current information. A prolonged interruption in production could lead to an undersupply of copper and cause prices, which recently did not know which direction to take, to rise significantly.
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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.