27 February 2024 – Prices for cold-rolled stainless steel continued to rise on the Chinese spot market today. Rally in stainless steel scrap: Prices up more than 5% in just a few days. And boom in luxury stocks: European market on the upswing.
Stainless steel prices in Asia continue to rise
Prices for Chinese stainless steel rose again today. In the spot market, grade 304 rose by around 1.4%. This means that 304 has already increased in price by more than 3.4% since 21 February. However, other grades, such as 316L, have also increased in price by more than 1%.
Rally for stainless steel scrap prices continues
Stainless steel scrap prices in China are also continuing to rise and today recorded a further increase of just under 2%. This means that scrap prices have risen by more than 5% in just a few days.
Boom in luxury stocks: European market on the upswing
Upward trend for luxury stocks: European luxury stocks have been experiencing an impressive upswing since mid-January. With an increase of around 25 per cent, they have significantly improved their annual performance to a plus of 13 per cent. This upswing was fuelled by the positive business results of the last quarter of 2023, in which sales were on average seven per cent above the previous year’s level – a surprise that eclipsed the five per cent sales growth of the third quarter.
Chinese market as a catalyst
A key driver of this increase was the encouraging data surrounding the Chinese New Year, which is comparable to Christmas business in the West in terms of its significance for the retail sector. The revival of consumption in China was particularly noticeable, illustrated by a 60 per cent increase in sales of consumer goods in the tourist-friendly province of Hainan compared to the previous year.
Sustained upturn possible
Outlook: If the annual reports of the luxury companies due in the next few days also confirm a positive trend in China, nothing stands in the way of a continuation of the current price gains. The signs of a return of Chinese consumer confidence could therefore signal a sustained upswing for European luxury goods shares.
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