Chinese stainless steel prices rise
Chinese stainless steel prices rise

21 June 2022 – Chinese stainless steel prices rose Monday and Tuesday and futures on the SHFE are also heading higher. Indian steel exports are expected to slump 40% in the current fiscal year. And Ukraine is putting itself on the map as a producer and supplier of green hydrogen.

Chinese stainless steel prices rise

Spot prices for Chinese stainless steel rose again on Monday and Tuesday. Stainless steel futures on the SHFE were also up about 2% today. According to market participants, demand has picked up and availability has currently decreased due to some larger deals. Overall, transactions in the Chinese stainless steel market have increased.

Indian steel exports to slump by approx. 40%

According to a recent analysis, Indian steel exports are expected to slump by 40% in the current fiscal year due to the 15% export tax on steel products.

The tariff-related price correction will improve the availability of steel in the domestic market as exports of finished steel will decline. This will have a direct and significant impact on India’s export volumes in the current fiscal.

Steel producers are expected to try to circumvent the duties by increasing exports of other products. However, it is unlikely that this will offset the loss in finished steel exports.

Hydrogen: Ukraine gets in on the green energy game

Even if the conflict between Ukraine and Russia is far from over, the country is already thinking about how green hydrogen could be produced and, above all, transported in the future in the country on the Black Sea.

Hydrogen infrastructure missing

Since the outbreak of the war and the renunciation of dependence on fossil fuels from Russia, the development of a hydrogen infrastructure and other alternative forms of energy (wind, solar, water) has moved further into the European focus.

But hydrogen projects are also being promoted elsewhere in Europe, e.g. in Germany and Austria.

Where will the water come from?

A complete infrastructure has to be built for this. For in addition to the complex hydrogen electrolyzers, intensive investments must also be made in the availability of water and water treatment. Because hydrogen production requires very clean water. And water is no longer available without restrictions in many regions of Europe.

Europe must redistribute water and hydrogen

The most recent example is the German state of Brandenburg, where forest fires are currently raging due to the intense heat and drought. A few weeks ago, Tesla’s new Gigafactory was opened there. And shortly after the opening, huge problems with the availability of water became apparent.

Billions to be invested in infrastructure

Therefore, in addition to the necessary supply of large amounts of renewable energy, the transport, storage, treatment and processing of water and hydrogen will become the central challenge. For comparison, the European gas network alone, which is used to transport and store natural gas, is more than 2 million kilometres long. This means billions of dollars of investment in production plants, pipelines and storage facilities for green hydrogen.

Anti-dumping duties of more than 90%

The European manufacturers of steel and stainless steel pipes will be pleased, because with the EU Safeguard measure and ample anti-dumping duties, e.g. on Chinese tube and pipe imports of more than 90%, they have drawn a mighty protective wall around Europe. The sanctions against Russia and Belarus, which also affect steel and stainless steel pipes and tubes, further reduce the choice, especially for European buyers.

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