3 July 2024 – Raw material prices in Europe started the trading day significantly higher today and the share prices of many EU steel mills also recorded gains. And the EU wants to take action against the exploitation of duty-free allowances, which are currently being deliberately exploited by Chinese e-commerce platforms.
Raw material prices started the trading day with significant gains
Contrary to the efforts of some news writers, raw material prices and the share prices of European steel manufacturers appear to be resisting these efforts.
European raw material prices, especially the base metals nickel, copper, lead, zinc and aluminium, started the trading day up between 0.7 and approx. 1.6%. EU steel manufacturers also saw their share prices rise, in some cases by up to 4%.
Further interest rate cuts later in the year?
Even though inflation in the eurozone has fallen slightly, core inflation remains at around 2.9%. If bank analysts are to be believed, this appears to postpone possible interest rate cuts until September 2024 at the earliest. In our opinion, one reason for this could be the current freight price situation. However, we believe this has reached its current peak.
EU plans measures against low-cost suppliers from China
According to recent media reports, the Chinese e-commerce platforms Temu, Shein and Alibaba, which are particularly active in the area of cheap clothing and consumer products, are exploiting the exemption limits for imports into the European Union. More than 2 billion packages were imported into the EU in 2023.
Utilisation of exemption limits reduces important freight capacities
This exploitation of EU import allowances is now apparently to be stopped. Not only is the EU missing out on important revenue, but a single parcel may not seem like much at first glance, but in total these shipments take up freight space that should be available for important raw materials. In addition, the already overburdened customs authorities in the member states would benefit significantly and be relieved.
For once, the European Commission seems to be doing something sensible here. Thorsten Gerber, CEO of the Gerber Group, commented this morning: “Even a blind hen sometimes finds a grain of corn.”
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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.
