November 16, 2021 – India expects domestic steel consumption to increase by up to 160 million tons per year in the coming years. AISI welcomes signature of US infrastructure package and focus on American-made steel. Strong dollar corrects prices – stainless steel futures unimpressed. And on the LME, inventories continue to fall.
AISI welcomes infrastructure bill and Buy American initiative
The American Iron an Steel Institute (AISI) has warmly welcomed the US infrastructure bill that has now been signed into law. And emphasized that the strong focus on American-made products to implement the infrastructure package will be to the benefit of domestic steel production.
With the US Infrastructure Act, millions of tons of additional steel will be needed in the coming years. With the use of primarily U.S.-made steel products in government projects, there will be shortages in other areas that will have to be sourced elsewhere.
Strong US dollar
The US dollar has gained strength in recent weeks, making this clear on the commodity exchanges and causing values to correct accordingly. However, Chinese stainless steel futures on the SHFE were unimpressed by this today and rose by up to 1%.
LME inventories fall further
Aluminum inventories on the LME have continued to fall over the past 30 days. Overall, aluminum inventories have decreased by about 13%. Interest in the market for aluminum remains unabatedly high.
Nickel inventories on the LME continue to decline. Compared with mid-October, nickel stocks have fallen by around 11% and interest in the market for nickel has actually risen further in the same period.
For copper stocks, the strongest downhill. Here, inventories have declined by almost 45%.
Indian steel consumption to increase by 66%
According to current estimates, Indian steel consumption is expected to rise to 160 million tons per year by 2024/2025. According to Indian data, it currently stands at around 96.2 million tons. This would be an increase of 66% in the next 2 to 3 years. From 2030, domestic consumption is even expected to increase to 250 million tons per year.
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