Stainless Espresso: German steel inventories fall significantly
Stainless Espresso: German steel inventories fall significantly

7 April 2022 – German steel inventories are expected to continue to fall significantly in the coming months, according to market sources. High demand and low production are keeping intra-European steel supply tight. This could now be compounded by an import ban on Russian hard coal. Nickel in supply deficit – even more dramatic than previously assumed?

Nickel in supply deficit

Chinese analysts assume that nickel will be in a supply deficit from 2024. Other commodity analysts also see a growing deficit in nickel availability coming.

We have also been dealing intensively with this topic for several weeks. After extensive research, evaluations and comparisons, we actually come up with even more dramatic values for the supply deficit and influences on the availability of nickel.

We expect to have completed our research within the next few days. You can expect that we will make our findings available to our loyal readers first.

Base metals with sideways movement

After yesterday’s announcement by the US Federal Reserve to put more pressure on interest rates and bond buybacks, the base metals have currently reacted rather with a sideways movement. Nickel rose by about 1.5% at the start of trading on the LME.

Yesterday, US American stocks had briefly lost some ground after the Fed announcement, but had subsequently risen and had almost made up for their losses. The German DAX and MDAX indices opened on a positive note. The majority of European stock markets are also reacting positively this morning.

German steel stocks expected to fall significantly

The German steel and stainless steel market expects stocks to fall significantly. Stocks had already fallen significantly in March. This trend is expected to increase again for April 2022. Strong demand, the Ukraine-Russia conflict and high energy costs are keeping European production low and causing inventories to shrink.

Coal sanctions could further tighten steel supply

The coming sanctions against coal exports from Russia could pose yet another challenge for German steel mills and the European steel producers. More than 60% of the coal imported from Russia in 2021 was metallurgical coal, if one looks at the available figures. It remains to be seen whether there are alternatives to Russian coal. Australia and Indonesia do not seem to be able to step in in the short term, as their production capacities are apparently fully utilised.

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