With HRC prices in Europe up to 133%, Stainless Espresso is particularly strong today. We take a look at what happened. In addition, Europe is not getting out of the steel shortage.
Overall, though, things should get even more exciting globally now that the United States is also aiming to cut 50% of its emissions by 2030. Who will take the lead? China? Europe? Or the United States again, after all?
EU: Hot-rolled coils (HRC) prices up 133 %
European HRC prices have had an indescribable rally since 2020. In May 2020, prices per ton of HRC were still around EUR 428.50 (US$463) EXW Ruhr.
Now that EU steelmaker ArcelorMittal has raised the price per ton for hot-rolled coils (HRC) to EUR 1,000 (US$1205) EXW Ruhr, the result is an incredible 133% year-on-year price increase.
From December 2020 alone, when a ton of HRC was still available from ArcelorMittal at EUR 570 (US$ 691), to April 2021, this means a price increase of 75%.
Source: spglobal.com
Despite production increase of about 22%: Germany cannot get out of steel shortage
In Germany, the BDS (Bundesverband Deutscher Stahlhandel) reports that flat steel inventories continue to decline dramatically and are not emerging from their historic 33-year low. Despite an increase in German crude steel production in March of more than 678,000 (about 22%) tons compared to February 2021, as reported by the German Steel Trade Association (Wirtschaftsvereinigung Stahl), current.
Source: stahlhandel.com, stahl-online.de
Further price increases expected due to Green Steel
Due to CBAM, EU Green Deal and Green Steel, prices for steel and stainless steel are expected to increase further. Away from the massive shortage of steel products on the European market. EUROFER and also ArcelorMittal have announced that further price increases of up to 100% can be expected for CO2 neutral steel produced in Europe.
An imminent end for EU Safeguards
These figures are likely to be water on the mills for an early end to EU Safeguard measures. Since Germany, as the largest steel producer in Europe, is no longer able or willing to meet domestic demand, then there is no basis for the European Commission to extend the EU Safeguards beyond June 30, 2021.
USA to cut 50% of its CO2 emissions by 2030
We mentioned briefly yesterday that the United States, with President Joe Biden, is trying to jump on the accelerating CO2 neutrality bandwagon. With China and Europe already battling it out for leadership in the Green Revolution, President Biden is announcing his ambitious climate goals: Reduce U.S. Greenhouse Emissions by 50% until 2030.
Read also:
- Stainless Espresso: New Battle? China and Europe competing for…
- Stainless Espresso: The three really important questions in stainless steel purchasing
- Stainless Espresso: Booming US Investments, Iron Ore Shortages, and Logistic Challenges
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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.
