7 June 2022 – Is the announcement by Indian steelmaker JSW Steel that it will not pass on the 15% steel export tax to customers just a diversionary tactic, a Maskirovka? Does easing on the semiconductor market continue? LME faces another million dollar lawsuit. And Acerinox ends merger talks with Aperam.
Do semiconductor indizies indicate relaxation?
The two important benchmark barometers for the semiconductor industry, the PHLX Semiconductor (^SOX) Index and the Nasdaq US Benchmark Semiconductors TR Index have already left their highs of late 2021 for some time. Currently, both indices have fallen year-on-year either to the previous year’s level or already below it.
US PPI for semiconductors shows inflation stability
The US Producer Price Index “Semiconductor and Other Electronic Component Manufacturing” also indicates that, unlike in other industries, inflation is not currently having such a strong impact on the semiconductor sector.
In its outlook for the semiconductor industry of mid-May 2022, IHSMarkit also does not see a further deterioration of the situation in the semiconductor market, but rather an easing.
Good news for automotive manufacturers, but also for other industries that use semiconductors in their products.
JSW Steel announcement on Indian steel export tax just maskirovka?
The top management of the Indian steel producer JSW Steel Ltd had advertised in the media that the new Indian steel export tax of 15% would not be passed on to international customers.
EU: Jindal Group already in the process of making additional demands
Meanwhile, according to European market participants, other O.P. Jindal Group companies, such as Jindal Stainless (JSL Limited), are already claiming or trying to collect the 15% steel export tax from European buyers.
Maskirovka by JSW Steel to divert attention from what is going on?
Of course, this makes one prick up one’s ears and raises the question of whether an affiliated company has been sent forward here in order to divert attention from the actual events by means of publicity-effective smokescreens – perhaps in the case of the company where a waiver of the 15% steel export tax would hurt the least? In the end, all just a diversionary tactic, a masquerade?
LME: Next lawsuit filed over nickel mess
No sooner had the first lawsuit been filed against the London Metal Exchange (LME) over the March 2022 nickel mess than the next one apparently followed. According to media reports, Jane Street Global Trading LLC has now also sued the London LME for damages – this time in the amount of USD 15.3 million.
Further claims for damages possible
And this will probably not be the last action for damages against the LME. In total, the damage caused to several nickel traders by the trading halt due to the failed short squeeze of the Chinese Tsingshan Group is said to amount to more than USD 4 billion.
No new European stainless steel giant
No sooner had rumors of a possible merger between European stainless steel producers Acerinox and Aperam been officially confirmed by their corporate leaders than the end has now been announced. Acerinox announced on Monday that it would not be continuing the talks.
Dominant position in stainless steel
The reason was left open. However, it can be assumed that the sheer size of the possible new group, with a theoretical production capacity of more than 2.3 million tons of stainless steel per year, would have had no chance of being approved by the European and US competition authorities.
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