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Is sanctioned steel coming to Europe in a roundabout way?
Is sanctioned steel coming to Europe in a roundabout way?

14 June 2022 – Caution advised: Sanctioned Russian steel coming to Taiwan – via now also to Europe and the United States? German Ifo Business Climate Index up in May 2022. Actively counter supply bottlenecks. And Indian stainless steel producers no longer competitive, according to their own statements.

German Ifo Business Climate Index up in May

The mood in the German economy brightened considerably in May 2022. The Ifo Business Climate Index rose to 93.0 points in May, after 90.8 points in March and 91.9 points (seasonally adjusted) in April.

Above all, German companies were noticeably more satisfied with current business. The German economy is proving robust despite inflation worries, material bottlenecks and war in Ukraine. Signs of a recession are not visible at present.

Actively countering possible supply bottlenecks

Catching possible supply bottlenecks is one of the biggest challenges for the German, but also the European economy. Skilful planning is recommended here for the second half of 2022 and also already for the first half of 2023.

Taiwan: 100,000 MT of Russian steel products from Chinese traders

The Taiwan Steel & Iron Industries Association has recently warned that more than 100,000 MT of Russian steel sanctioned by Western countries – especially hot-rolled strip and slabs – have already been sold to Taiwan by Chinese traders.

Original origin is becoming increasingly important

The news is of particular interest to US companies who, at the latest since the new melt & pour regulation for aluminium exports from the UK, have to pay even more attention to the origin of their purchases.

Raw materials: Be careful where you buy

In view of the sanctions against Russia, one should also be very careful in the European Union where one buys material, because ultimately the input material also plays an important role.

Steel export tax: Indian stainless steel producers face long-term consequences

Indian stainless steel producers do not have it easy at the moment. While their products were already subject to high anti-dumping and countervailing duties by the European Union last year, the 15% export tax has now been added.

Stainless steel subsidised by the state, according to Indian manufacturers

According to Indian manufacturers, this will have long-term effects on production in their own country. And the first complaints are already being heard there that the industry, which is almost exclusively geared to exports and, according to its own information, has been subsidised by the state for many years, has no sales market in India itself.

Manufacturers: Indian stainless steel now no longer competitive

Indian manufacturers already see themselves excluded from the international market for a long time and as no longer competitive because their products are now too expensive.

LME nickel price and reality

Because of yesterday’s nickel movement, let’s take a quick look at the London Metal Exchange (LME). Not on the price, which in our eyes does not reflect reality, but on the traded volumes.

Traded nickel volume shows that the trading centre is losing its importance for nickel, but now probably also for other commodities. Traded volumes have plummeted by 70 to 80% compared to the months before the March 2022 chaos.

And the LME’s inventories also continue to decline. So the question is probably justified whether the sell-off on the LME has begun and it is time for a new nickel market?

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