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Stainless Espresso: Real estates, automotive demand, chips and delivery times
Stainless Espresso: Real estates, automotive demand, chips and delivery times

21 January 2022 – Real estate in China on the rise after government measures. Strong demand from the automotive sector is now also pushing up European HDG and CRC prices. European Commission to unveil its microchip bill in February. And long delivery times are here to stay – how to counter this?

Chinese real estate shares rise sharply

After the Chinese central bank significantly lowered credit reference rates yesterday, the share prices of Chinese real estate developers have risen sharply – by up to 10% at peak times. This has also largely silenced the prophets of doom who had predicted a collapse of the real estate market in the Middle Kingdom. Even if a residual risk always remains, the targeted measures taken so far and those still to come, such as further interest rate cuts and tax relief, should strengthen the markets’ confidence in a successful stabilisation of the Chinese domestic economy, which could also benefit China’s capital markets in the course of the year.

What is the nickel doing today?

At the weekend, nickel on the SHFE rose again by about 4%. Asian stainless steel futures are also up another percent. On the LME, nickel has started in positive territory and remains above $24,000 per tonne.

EU: HDG and CRC prices rise, chip bill already in February

Prices for hot-dipped galvanised (HDG) and cold-rolled coils have continued to rise due to increasing European demand, especially from the automotive sector. We were already told yesterday about rising prices for hot-rolled coils in the EU.

European Commission pushes EU chip law

By 2030, one fifth of microchip production is to take place in Europe. This is the target set by the European Commission in its draft EU chip law. The draft law is to be presented as early as February 2022. The aim is to promote the all-important semiconductor industry, which has recently suffered from massive supply problems.

Such a law, with corresponding implementation, could lead to significantly more products being produced again within the European Union that could currently only be procured from other parts of the world.

Longer delivery times remain

More and more industrial companies are confronted with longer delivery times. This is also the case for the packaging industry, for example, whose raw material delivery times have increased eightfold since the end of 2020. However, this general challenge has gripped almost every sector of industry.

We therefore consider it questionable when so-called experts make statements and promises about this that are supposed to mean the opposite for the course of the year.

For us, good planning and transparent communication will remain essential for successful procurement.

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