September 8, 2021 – The current news situation is rather quieter today. Therefore, today we only take a brief look at the general figures on the metal markets and give a small outlook on Chinese imports and exports in August 2021 and upcoming infrastructure investments. We also venture a brief excursion into the sometimes pointlessly muddled discussions on CO2 reduction and ill-considered green transformation measures.
Metals: Figures, data, facts as
of September 8, 2021, approx. 8:25 a.m., GMT+1
- Nickel SHFE: $23020.27 per ton, up +1.40%.
- Nickel LME: $19,780 per ton, +1.22%
- Aluminum SHFE: $3410.18 per ton, +1.31%
- Aluminum LME: $2,789 per ton, +0.83%
Chinese spot prices for stainless steel and hot-rolled coil increased slightly again today.
Source: lme.com, shfe.com.cn
Higher infrastructure investment in China
As reported by Deutsche Bank, China’s exports rose by an unexpectedly strong 3.8 percent in August compared to the previous month. Exports to the U.S., the EU and Japan rose particularly strongly, with growth rates of between three and five percent. Consumer goods such as electronics, furniture and toys were particularly in demand.
However, the sharp rise in imports in August is worthy of note: Compared to July, imports increased by 4.4 percent. The 8.3 percent jump in iron ore imports may indicate that infrastructure investment in China is gradually picking up thanks to government support.
There are plenty of funds available: Across all levels of government, only 36 percent of this year’s budget had been used by the end of July. Investment in transport, energy and the environment recently rose by only 4.6 percent year-on-year.
In the long term, higher growth should benefit not only global commodity prices, but also Chinese stocks in the basic materials, construction and engineering sectors.
Discussions on measures to curb climate change come to a head
One of the defining issues worldwide is the threat of climate change and the measures needed to avert it. In the wake of Hurricane Ida on the East Coast of the United States and fires that have been raging for months in California, U.S. President Joe Biden has called for a red alert for the U.S. and the world with regard to climate change.
EU funds steelmakers to modernize ailing plants
The European Union is currently trying to take the lead in opinion and moral authority in the fight against climate change, but in doing so is increasingly making itself the plaything of European steel manufacturers. They are using billions in subsidies to finance the modernization of their completely outdated plants under the guise of the green transformation. In the long term, however, the miracle drug hydrogen from alternative forms of energy, which is supposed to make steel green and clean, is not available in sufficient quantities and will apparently be extensively substituted by natural gas.
Germany: Important election in Europe
In Germany, the debate between the parties on this issue is also heating up ahead of the upcoming federal elections. In large parts, old clichés that seemed long outdated continue to be served up here.
The reaction of the leading liberal candidate Christian Lidner (FDP) to the statement of the Green candidate for chancellor Annalena Baerbock with regard to the necessary CO2 reduction “Because the market doesn’t care about people,” speaks volumes in our eyes.
And what moves you today?
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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.