16 June 2023 – The South African government has extended the existing scrap export ban on certain ferrous and non-ferrous waste for another 6 months. Japanese stainless steel producers hike prices again. LME and SHFE nickel prices up 11% since end of May. And China cuts second key interest rate.
Japanese stainless steel producers hike prices again
A large Japanese stainless steel producer has raised prices for nickel-based cold-rolled stainless steel for the fifth month in a row. They are currently up by about 1%. Chrome-based stainless steel grades are even up by about 3%.
Nickel prices have increased significantly
Since the end of May, nickel prices on the SHFE and LME have risen significantly by more than 11%. On the LME today, 16 June 2023, nickel currently stands at over $23,000/MT. Asian spot prices have also risen by more than 5% in the last two weeks.
South Africa extends scrap export ban until end of 2023
South Africa’s Department of Trade, Industry and Competition has extended restrictions on the export of certain ferrous and non-ferrous scrap.
The scrap export ban, which will be effective for six months from the date of notification, is aimed at combating the theft of metals and disrupting criminal networks. It applies to various forms of ferrous scrap, including iron or steel ingots and copper waste and scrap.
Additional measures, such as the ban on cash transactions and the restriction of scrap exports to a limited number of ports of exit, have also been introduced.
China with next key interest rate cut
After China surprisingly lowered the Standing Lending Facility (SLF) interest rate by 10 basis points this week, the People’s Bank of China (PBOC) also lowered the Medium-Term Lending Facility (MLF) interest rate by 10 basis points on Thursday.
Chinese industry experts believe that the coordinated cut in policy rates has sent a clear signal that the PBOC is aiming to stabilise growth, reflecting counter-cyclical adjustments in monetary policy and further strengthening support for the real economy.
The market reaction to the PBOC’s interest rate cuts has been notably positive so far.
- Chinese steel stocks down, India in buying mood, EU next?
- China cuts key interest rate, nickel price jumps upward
- Permit for US copper-nickel mine project withdrawn
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