25 February 2022 – Russia and the United States produce almost the same amount of crude steel per year. However, there are significant differences in exports. Stock indices have recovered and are trending upwards. Future market still firm. What about China? A short thought for the weekend.
Steel: Sanctions against Russia
An interesting comparison between Russian and US steel is that both nations produce roughly the same amount of crude steel per year. An interesting but all the more dangerous fact is that, unlike America, Russia exports well over 50% of its annual production of about 76 million tonnes. Primarily to the European Union.
What sanctions against Russia will mean for the availability of steel in Europe is anyone’s guess.
Stock indices up again
After the stock markets corrected yesterday due to the conflict between Russia and Ukraine, they are already showing a friendlier face again today and are trending upwards. So any fear of a lasting negative impact on the stock markets seems unfounded at the moment.
Futures market continues to trend upwards
Base metal futures continue to be firm and are moving at a high level. Even though nickel futures on the SHFE fell a little today, the short-term Russian and Chinese nickel (99.9%) has continued to rise in price per tonne and is at a significant multi-year high of just under $28,500.
For us, this is a further indication that a weakening of the steel or stainless steel price cannot currently be substantiated with reliable facts.
What about China? A thought to close the week
Would now perhaps be a good moment for China to act on its partner Russia as mediator and diplomat where the West has failed? This could have a lasting positive impact on China’s prestige in the world. And as written: It’s just a thought.
- Up more than 5%, nickel and aluminium prices jump
- China limits crude steel production also in 2022
- Aluminium prices at record high due to supply concerns
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.