Tight power supplies in China are having an increasingly visible impact on stainless steel price trends, as evidenced today, July 23, 2021, by a look at prices that have once again risen sharply. Nickel is again topping $19,000 per ton on the LME. And aluminum Midwest Premiums in the United States jump to over $660 per ton.

Stainless Espresso: Chinese power cuts have visible impact on stainless steel prices
Stainless Espresso: Chinese power cuts have visible impact on stainless steel prices

Facts, figures: Nickel on SHFE up over $700

The nickel was already the last few days due to high demand in stainless steel and EV raw materials, visibly increased. Today, Friday, July 23, 2021, it has risen to over $19,150 per ton on the LME and on the SHFE, the most traded Ni 2018 contract has risen by about $770 and the nickel spot price has also increased by about $570.

Source: shfe.com.cn, dce.com.cn, lme.com, investing.com

Chinese energy problems having visible impact on stainless steel prices

Stainless steel prices in China have increased significantly in recent months. Whether it was stainless steel futures on the SHFE or prices on the Chinese spot market.

Power cuts as price driver

Now, power cuts in many Chinese provinces are also increasingly becoming a problem for stainless steel producers and raw material producers.

Energy with a significant impact on stainless steel prices

Then again today, stainless steel prices reacted to this again and and went up by at least $50 per ton in the spot market. And also on the SHFE, stainless steel futures had already risen by over 4.25% today.

Ferrochrome prices sprint upwards by over 10%

The power cuts and production restrictions in China’s Inner Mongolia have also caused the ferrochrome price to jump. Today it has already increased by over 10%.

Aluminum supply continues to tighten

With China becoming a net importer of aluminum since the second half of 2020, global aluminum prices have risen significantly. The background here, in simplified terms, is similar to that of steel: energy shortages.

Rusal to cut exports of aluminum

Yesterday, we already referred to the announcement by Rusal, the world’s largest aluminum producer outside of China, to significantly cut back its exports from August 2021 due to Russia’s 15% export tax on raw materials.

Falling aluminum inventories in China

China also reported continued high demand and falling stocks from social warehouses.

United States: Aluminum Midwest Premiums at Record Highs

All these reports combined with high demand, aluminum shortages in the spot market and logistics problems has catapulted US aluminum Midwest Premiums to a record high of over $660 per ton. Analysts even believe that premiums could rise to over $770 per ton in the future.

Source: investing.com, agmetalminer.com

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