Stainless steel demand in China and Europe remains high. Prices for Chinese stainless steel have continued to rise as purchasers seek to take advantage of current prices ahead of an expected increase in nickel. Base metals have lost slightly on the spot market, but demand is expected to remain high. In China, there are further production cuts in steel manufacturing. And in Europe, stainless steel buyers are trying to cover their requirements for 2022, as there are already major delivery delays at EU steel mills. And is a new anti-dumping case on HRC coming from India?
Breaking News: EU to extend anti-dumping measures against Taiwan and China
Metals slightly down in spot market
The important metals slipped slightly into the red in the spot market today. Overall, however, we agree with Deutsche Bank’s view that despite interim price corrections due to strong demand, there is still further potential in the medium term. For copper, for example, a supply deficit of 385,000 MT is expected in 2021. Fire is also likely to be added to the metals once infrastructure programs, such as those in the United States and Europe, take effect. S&P Global Ratings also sees metals prices continuing to be hot, but also no expected melt-up point yet.
Chinese stainless steel demand high
Stainless steel prices in China continue to rise. With nickel on the LME and SHFE up over 3% in the year to June 30, and signals from the nickel market that demand could pick up again significantly, stainless steel buyers picked up more.
Steel mills in China have to cut production
In several provinces in China, e.g. Anhui, Shandong, Zhejian, Hunan, Shanxi and Gansu, steel mill operators have been ordered to cut production. The background is said to be environmental protection measures, among other things.
Stainless steel buyers in the EU try to secure demand for 2022
With virtually no stainless steel currently available in Europe, domestic stainless steel buyers are already trying to cover their requirements for 2022. Supply in the EU is likely to decline even further, as production cutbacks due to maintenance work are expected in the coming summer months.
Stockholders can hardly cover demand
We have received feedback from stockholder circles in particular that there are considerable delivery delays and disruptions for European stainless steel.
Safeguard prevents simple solution
The EU Safeguard extension prevents a simple solution to the problem. “In the meantime, this seems to have reached even the most stubborn consultancies in the steel industry,” said Thorsten Gerber, CEO of Gerber Group, which is active in international stainless steel trading. He went on to say, “But no matter how high the hurdles, we stand up for our customers every day to find solutions to this challenge.”
EU: Is new anti-dumping case on HRC coming from India?
According to market sources, a new complaint seems to have been filed against Indian hot-rolled coils into the European Union. However, official confirmation is still pending. And why tariffs on Indian HRC could hurt the EU industry.
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- Stainless Espresso: EU coils sold out until end of 2021
- Stainless Espresso: Will the US infrastructure program suck the steel market dry?
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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.