Market sources in the European Union report that the major domestic steelmakers are sold out regarding processed coils until the end of the year. Things are not looking any better on the EU spot market. And analysts see steel prices at high levels for a longer period.
Shanghai base metals rose across the board as investors looked ahead to U.S. jobs data
Shanghai base metals were mostly higher on Wednesday morning as global investors watched the spread of the Delta Covid 19 variant and awaited important economic data from the US. Meanwhile, their counterparts on the LME were also mostly higher.
Copper rose 0.1%, zinc 0.66%, aluminum 0.16%, nickel 1.05%, lead 2% and tin 0.2%.
LME closes mostly higher on Tuesday
The LME closed mostly higher on Tuesday. Zinc rose 0.89%, aluminum rose 0.04%, tin rose 0.63%, lead rose 2.12% and nickel rose 0.57%, while copper fell 0.5%.
Steel Mageddon” will hit steel? “We expect steel prices to stay higher for longer” says analyst
Gordon Johnson, CEO of GLJ Research, explains on BNN Bloomberg why the aggressive fiscal stimulus is driving many commodities higher – including steel – and expects U.S. Steel and Cleveland-Cliffs to be “real winners” in the bull market.
Source: BNN Bloomberg
EU coils sold out until end of 2021
According to current market sources, European steel producers are already sold out of processed coils until the end of 2021. Spot material in the EU stainless steel sector can usually only be found if another customer has withdrawn. In addition, there seem to be indications that the chip shortage among auto manufacturers could decline slightly. US analysts predict significantly increased demand for the otherwise quieter summer months.
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