July 28, 2021: Criticism of the European Commission’s three-year extension of the EU Safeguard measures continues unabated. The EU economy is being severely damaged by supply bottlenecks; in Germany alone the estimated losses amount to more than 25 billion euros. Other media report on possible export tax on Chinese steel products. And raw materials and semi-finished products are proving robust and holding steady today.
Criticism of EU Safeguard extension continues apace
UK automotive retailer Simon Bailes, has called on Business Secretary Kwasi Kwarteng to act on the European Commission’s recent decision regarding the extension of EU Safeguard measures.
Simon Bailes commented, “Such a stance will negatively impact the automobile sector, which is already hampered by supply shortages.”
The decision to extend current EU Safeguard import restrictions comes at a time when European automakers already face acute shortages in both steel and microchips – resulting in a slowdown in manufacturing which require constant management of orders to avoid assembly line stoppages.
Shortage is a pan-European problem
And it is not just the automotive industry that is hard hit by the current situation. All sectors of the European manufacturing industry are affected by high purchase prices and lack of availability. Steel products are only part of the problem. Wood, cement, plastic, gypsum and other raw materials are difficult to obtain in Europe.
Supply bottlenecks cost the German economy billions
Added to this are major problems in logistics. For Germany alone, the total economic damage in 2021 due to supply bottlenecks caused by the Corona pandemic and natural disasters is estimated at more than 25 billion euros.
When will the European Commission finally react?
“We wonder when the arrogance of the European Commission will give way to reason,” Thorsten Gerber, CEO of Gerber Group, said today. “How much more damage has to be done to the European economy before the EC finally comes to reality?”
Are you also suffering from supply bottlenecks for steel and stainless steel? Get in touch with us! We are trying to help. (Call: +49 7642 9282851 | Mail: firstname.lastname@example.org)
Chinese export tax on steel products
More and more media are reporting on a possible coming export tax on Chinese steel products.
Update, July 30, 2021: China eliminates export rebates and makes global stainless steel production more expensive
Phoebe Sedgman of the American Journal of Transportation writes, among other things:
“Potential rates being discussed range from 10% to 25% and products include hot-rolled coil, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak to the media. Officials are seeking to implement the levies in the third quarter, though they’re still subject to final approval, one of the people said.”
Paul Lim and Zihuan Pan of Fastmarkets report:
“A looming potential steel export tax, and more changes in value-added tax rebates for steel exports, are keeping export trades very thin, sources told Fastmarkets.
There has been increasing market chatter in recent weeks about more changes in steel tax rates which could be announced on August 1, causing hesitation and confusion in export trading.”
We continue to keep an eye on the issue for you.
Facts, figures, data: What are commodities and semi-finished products doing today?
Overall, commodities and semi-finished products are holding robust and steady.
Nickel on the LME has recouped its losses and is holding steady at over $19,500 per ton. Chinese stainless steel spot prices are up again today by as much as $31 per ton.
The key CME U.S. Midwest Domestic HRC Steel Index Futures also rose again on Tuesday, up 4.72% from $1781 per shor ton to $1865.
Aluminum Premiums Duty paid US Midwest are up about 0.66%. This means that aluminum premiums in the United States have increased by more than 17% since the beginning of July 2021.
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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.