21 November 2022 – The US government last Friday imposed sanctions on several Russian- and Belarusian-owned nickel mining companies. Stainless steel futures in Asia rise 1.5%. The STOXX 600 gives EU companies a positive tailwind. And India is taking an early hit on its steel export tax.
Stainless steel futures rise
Asian stainless steel futures on the SHFE gained more than 1.5% in Monday’s trading.
Tailwind for European firms
The STOXX 600 has gained a good 12 per cent since the end of September. Tailwinds have come from better gas supplies, storage levels and warm weather. In addition, governments are coming to the aid of households and companies. The domestic stock markets are also receiving support from overseas and the Far East.
India catches steel export tax early
Contrary to the Indian government’s previous statements that it intended to maintain the steel export tax until 2023, it was lifted last weekend.
However, analysts and the Indian steel industry do not expect the repeal to have any short-term impact.
Moreover, high anti-dumping and anti-subsidy duties continue to weigh on Indian steel exports in many parts of the world.
LME decision boosts commodity deals with Russia
The LME’s widely criticised decision not to ban Russian commodities from the trading floor seems to have triggered some deals with Russian commodity suppliers in nickel, platinum, palladium and aluminium. Presumably out of concern that sanctions might be levied against raw materials from Russia after all, in a rush.
Are sanctions against Russian aluminium coming?
Because in the United States, sanctions against Russian aluminium are already being considered aloud. In the European Union this is also being discussed and flat-rolled aluminium has already been sanctioned. While the United States has already imposed import taxes of up to 35% on nickel products from Russia. A fact that also applies to the United Kingdom.
There is now a certain double standard at work here. While some companies have sanctioned themselves with regard to Russian raw materials, others are taking a good bite.
US government imposes sanctions on nickel companies
The fact that the market watchdogs are already lurking somewhere is often forgotten. Last Friday, the US government imposed sanctions on several Russian and Belarusian-owned companies involved in nickel mining in Guatemala.
- SHFE nickel contracts hardly react to LME chaos
- Nickel soaring, LME influence and too little liquidity
- Stainless steel alloy surcharges for December 2022 still on the rise?
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