11 January 2023 – As the Covid peak in China is passed, the markets are also picking up. This can be seen, among other things, in the demand for iron ore and the scarce availability. At the same time, several countries are reporting emptying stocks at distributors and an emerging run on HRC in Europe – which may not be able to be served.
Iron ore prices rise, Chinese corona peak exceeded
The peak in the Chinese corona pandemic seems to have been passed, which can currently also be seen in the demand and the significantly increased Dalian and Singapore iron ore prices. The most traded contract on the Dalian Commodity Exchange rose to its highest level in 6 months, closing today at more than $120 a tonne.
Scarce iron ore supply
Concerns over limited iron ore supply are further supporting prices, which are already being pushed higher by a brightening demand outlook in China. Data suggest fewer iron ore shipments are reaching China, especially from Brazil.
Stainless steel demand in China picks up
Demand for stainless steel in is expected to pick up further in the coming months. Increased demand is still expected from the construction sector, especially in connection with the Chinese stimulus programmes, and from the daily products sector.
Price increases expected for Taiwanese stainless steel producers
After the Lunar New Year celebration, Taiwanese stainless steel producers are expected to increase their February prices. Rising raw material costs and empty stocks at customers are cited as reasons. The first suppliers are also reporting delivery times for stainless steel from Taiwan for August or September 2023.
Hot-rolled coil more expensive in Europe
In the last quarter of 2022, many steel producers in Europe had cut production. This is now hitting distributors’ increasingly empty warehouses. And concerns about delivery times or delays are spreading in the market. This is driving up prices for HRC in Europe. Together with the rising demand for steel and raw materials in China, this could soon lead to a run on available positions.
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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.