8 April 2022 – Italy: The steel market is humming. High demand, falling inventories and low availability are fuelling the Italian market. Because only those who have steel are earning money at the moment. China has supply problems with aluminium. Rating agencies raise price outlook for base metals by up to 30%. The LME starts trading on a positive note. And Germany’s energy problems are home-made.
Italy: Only those with steel are making money now
According to market sources in Italy, only those who have steel and stainless steel in their stocks can rejoice. Demand is high and order books are full, availability is low and inventories already have to be replenished. Especially in the area of flat steel, i.e. sheets, plates and coils, the requirements in Italy are high.
In particular, high energy costs, a lack of raw materials and reduced production make it necessary to look for alternatives. After all, it is those who still have material who are earning money in Italy (and beyond) at the moment.
China: supply problems with aluminium
Due to the ongoing quarantine measures of the Chinese government, Chinese aluminium producers report that they have to reduce their production rates, especially for flat products like plates, sheets, strips and foil, because they cannot get their material shipped.
Price outlook for nickel and aluminium raised
The rating agency Moodys has raised its price outlook for base metals for 2022, especially for aluminium and nickel. Moodys raised its outlook for aluminium by 30%. For nickel, the analysts see prices rising by 20%.
The balance between supply and demand for these commodities was already tense before the outbreak of the military conflict and will continue to lead to rising prices, according to the rating agency.
LME: Aluminium and nickel start positively
After nickel prices on the LME had risen again yesterday, marking the fourth consecutive day of gains, nickel gained another approx. 1.3% at the start of trading on Friday and currently stands at approx. $ 34,150 per tonne. Aluminium also started Friday on a positive note, up about 1.3%.
Germany’s energy problems are homemade
During her long time in office, former German Chancellor Angela Merkel liked to play the good cop and communicate dirty and unpopular decisions through her cabinet. In particular, former Federal Minister of Economics Peter Altmaier liked to be used as a compliant bad cop.
This is particularly evident in the now exorbitantly increased energy prices and Germany’s dependence on external energy suppliers. For far too long, the last federal government made itself comfortable in the environment of the lobbyists rather than having the courage to make supposedly uncomfortable decisions.
While Germany was once a global pioneer in solar and wind power, there is not much left of it today. We can only hope that the current federal government will not allow itself to be harnessed so willingly to the lobbying chariot.
- German steel inventories fall significantly
- Copper with persistent supply deficit
- Will nickel prices get a breather in 2022?
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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.