September 28, 2021 – The supply of Chinese stainless steel was significantly reduced shortly after the announcement of further energy rationing, this time in Fujian province. Nickel prices should stabilize due to supply and demand situation. EU Trade Chief moderately optimistic about resolution of EU-U.S. tariff dispute over steel and aluminum.
Stainless steel Fujian region must ration energy
The Chinese province of Fujian, which is considered an important stainless steel producer, has been ordered to reduce energy consumption. Currently, there is talk of at least 15 days on which the energy supply in Fujian is to be rationed. A 15% decline in stainless steel production is already expected for September 2021.
Chinese stainless steel producers already limiting supply
The effects are already being felt in the stainless steel industry. Offers from Chinese stainless steel producers were severely limited after the measures became known. Market sources report that delivery times for Chinese stainless steel will increase and prices will rise.
Energy shortage: nickel price to stabilize
Nickel prices have fallen slightly due to the Chinese energy crisis and lower output from stainless steel mills. However, this is likely to be only a short-term decline, as nickel production is also affected by the energy cuts and thus nickel supplies are likely to tighten further.
Global demand for stainless steel remains high, and the material – also due to the recent energy cuts – continues to be in very short supply. Overall, this should lead to a stable price for nickel.
Looking at the overall picture of the current energy shortage, it may have been somewhat premature of China to ban imports of Australian coal.
EU trade chief moderately optimistic about solution to tariff dispute
Vladis Dombrovskis, EU trade chief, was moderately optimistic about a solution to the EU-U.S. dispute over steel and aluminum tariffs in Washington on Monday.
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