August 20, 2021 – How playing with fear affects commodity markets. Chinese stainless steel prices remain stable due to increased demand. CISA calls for more export discipline for steel products. And can 2020 really be used as a representative statistical source?
China’s stainless steel price remains stable thanks to rising demand
An increase in end-user demand kept Chinese stainless steel prices stable in the week to Wednesday, August 18.
Nickel and stainless steel futures also saw minor changes during the week, helping to keep stainless steel spot prices stable.
Focus: How to make commodity market prices go downhill
Prices on the commodity exchanges have fallen yesterday. And once again, one can observe how easily commodity exchanges and foreign exchange trading can be artificially influenced. The summer slump is used as an amplifier and the undersupplied media landscape is instrumentalized as a willing medium for this purpose. Because bad news, are as well known good news. The play with the fear.
Read the whole story now: The fear game: How to make commodity market prices go downhill
CISA: Concrete demands for more export discipline for steel
The China Iron and Steel Association (CISA) has backed up its call for more export discipline on steel products with a concrete proposal. CISA had already recently called for the Chinese government to take further measures to curb steel exports, such as an export tax.
Source: chinaisa.org.cn
Opinion: Reference year 2020 not representative
Current articles in public media repeatedly refer to statistical data from the year 2020. We do not consider this to be representative. The year 2020 will probably go down as one of the darkest years in the history of mankind and if it is only related to economic development. Using data from that year to reference a significant increase in Chinese steel exports in 2021, for example, is simply misleading.
Comparing data from 2019 to 2020, Chinese steel exports have decreased by over 10 million MT. Compared to 2018, even by about 14 million MT.
If China’s export volume at the end of 2021 exceeds that of previous years, this will be attributed to global hyperdemand rather than an increase in overcapacity.
Read also:
- The fear game: How to make commodity market prices go downhill
- Stainless Espresso: Chinese stainless steel exports decline
- Stainless Espresso: Chinese aluminum becomes even scarcer
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
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.
