August 6, 2021 – According to market sources, EU lead times have already arrived in March 2022. And the order books for 2021 at EU steel producers are full. Base metals, such as nickel and aluminum, continue their positive trend today. Chinese aluminum production in particular remains scarce due to electricity restrictions. And now planning logistics and procurement for late 2021 and early 2022 – Next peak season ahead.
EU lead times for stainless steel and steel already in March 2022?
As we are told by various sources, the lead times for steel and stainless steel produced in the EU have now finally reached 2022. Apparently, even the steel mills’ order books are already largely filled for January and February 2022, leaving little room for new orders.
Base metals on the upswing on SHFE and LME
Base metals in Shanghai were mostly up Friday morning amid increased power restrictions in China and the upcoming peak consumption season. Meanwhile, counterparts on the LME moved in a similar fashion.
How’s the nickel doing?
Nickel futures on the LME stand at over $19,500 per ton and on the SHFE at around $22,515, up over 1.5% from the previous day. Chinese nickel premiums are also up more than 31.5%.
What’s happening in aluminum?
Aluminum futures on the SHFE are currently up over 1.2% at around $3090 per ton. In Guangxi, the power restriction at aluminum mills widened and supply was further restricted as a result.
Aluminum premium duty paid US Midwest continued to tighten on August 5, 2021, up nearly 5%.
Logistics and procurement: be sure to plan for your needs now
Currently, it is more important than ever to get your procurement planning for the second half of 2021 and the first half of 2022 under your belt. The coming peak season is imminent, which will further fuel demand, especially in the spot market.
Many production slots already fully booked
In Europe, production slots for steel, stainless steel and aluminum are already fully booked, demand remains high and the industry can barely keep up with production. Many metal consumers have even already used up their framework contracts for 2021.
Plan well ahead!
Particularly in logistics, it is essential to plan well ahead. Better now than when you end up having to compete for container space with major end-user holidays and the sell-out days in the United States and Europe.
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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.