On Monday we like to look at the markets and can make out a strong start to the week. In Asia, spot and contract prices increased on July 5, 2021. In some cases even very significantly, such as Dalian Iron Ore with over 5%. Or aluminum with more than 2.85%. In Europe, alloy surcharges for 316 have increased sharply. In China, Ferrochrome is up almost 13%. And the production index for NPI in China is up 15 points in June. What else will be important this week….
Facts, figures, data: Metal spot and futures prices up
Metals spot prices rallied sharply in Asia on Monday. Dalian Iron Ore jumped over 5% after Tangshan Steel Mills resumed production. Nickel futures on the SHFE are up nearly 2%. Steel and stainless steel futures are up as much as 1.61%. Aluminum is up more than 2.85%.
On the LME, nickel ($18,447 per ton) and aluminum ($2,564 per ton) futures are also currently trading higher.
EU alloy surcharges for 316 grades up significantly
EU alloy surcharges for 316 grades have increased significantly in Europe. In some cases by more than 9%. The background seems to be the strong increase in molybdenum prices.
China’s Tsingshan raises ferrochrome offer price by $147 per ton in July
Leading Chinese stainless steel producer Tsingshan Group has increased its ferrochrome offer prices for the month of July by nearly 13% ($147) per tonne from the previous month, the company announced on Friday, July 2.
The increase was prompted by supply disruptions due to production constraints in a number of regions.
Chinese nickel pig iron production increases significantly
As reported by earthi.space, Chinese nickel pig iron (NPI) production has increased significantly in recent months. The China nickel pig iron index jumped from 47.7 in May 2021 to 62.3 in June. According to earthi.space, this makes June one of the two months in the last 5 years with the highest activity. In comparison, Indonesia has only been able to increase its NPI index by just under 5 points.
What will be important this week
This week, Deutsche Bank once again provides an interesting insight into what is in store for us.
Monday, June 5, 2021
- U.S. | Stock exchanges in the U.S. remain closed for Independence Day.
- Eurozone | Final purchasing managers’ index for the service sector in June. According to the final figures, sentiment among service providers is likely to have improved strongly thanks to widespread openings in many member states.
- Euro area | Sentix investor confidence in July. Despite the already high level, investor sentiment may have improved slightly once again.
Tuesday, June 6, 2021
- Germany | Industrial Order Intake in May. After a small setback in April, orders should have grown significantly again, also thanks to continued strong global demand.
- Germany | ZEW Economic Sentiment. With analysts’ and investors’ sentiment already at a 20-year high in previous months, a small setback as expected for July would not be too tragic.
- Eurozone | Retail Sales. After the lockdown was scaled back in many euro member states, sales should have increased significantly in May.
- USA | ISM index for the service sector in June. With service sector sentiment already at record levels, a further increase in the index is unlikely.
Wednesday, June 7, 2021
- Germany | Industrial Production in May. Although output is expected to have risen again after a setback in the previous month, persistent bottlenecks in supply chains may have slowed down developments in the automotive sector in particular once again.
- EU | The EU Commission published new economic forecasts for the member countries; expectations for inflation and growth could be raised sharply.
- U.S. | The minutes of the latest FOMC meeting are likely to attract a lot of interest. It could provide further clues on the assessments of the U.S. monetary watchdogs.
Thursday, June 8, 2021
- UK | RICS house price balance for June. Following the Bank of England’s recent concern about developments in the housing market, another sharp rise in prices could fuel expectations of an imminent tightening of monetary policy in the UK.
Friday, June 9, 2021
- UK | Industrial Production. Output is likely to show a strong recovery in the economy after the pandemic subsided, as do the monthly GDP figures published at the same time.
- France | Industrial production in May. Following a minimal decline in the previous month, output should have risen again noticeably, signaling a continuation of the upswing in industry.
- Stainless Espresso: Tariffs on Indian HRC (hot-rolled coil) could harm EU
- Stainless Espresso: EU to extend anti-dumping measures against Taiwan and China
- Stainless Espresso: Stainless steel demand remains high, prices rise
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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.