13 January 2022 – New Covid 19 outbreaks in China have led to stainless steel supply chains there being hit by quarantine measures again. LME inventories are at historic lows and there is no end in sight to the demand boom. And the EU needs nearly $600 billion of investment in the energy sector to meet current challenges and its self-imposed targets.
Chinese stainless steel hit by new Corona measures
Stainless steel supply chains in China for domestic trade but also for export are once again affected by acute government measures against local corona outbreaks. This has already prompted market participants to send staff (e.g. truck drivers) on holiday early around Chinese New Year out of concern about further quarantine measures. There is also concern that Chinese ports could be hit by closures again.
LME base metal stocks virtually empty
The LME’s inventories have been virtually empty in recent months. This further proves the very high demand for commodities in 2021 and will also be one of the biggest challenges for 2022. New technologies, infrastructure projects in Asia, Europe and the United States and the green transformation will continue to put a lot of pressure on base metal prices.
EU needs nearly $600bn in energy investment
According to media reports, the European Union needs an investment of almost $600 billion over the next few years to meet its energy needs. This massive amount needs to be invested to meet current challenges and the self-imposed goals of green transformation.
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