16 June 2022 – A further increase in demand for stainless steel in Europe could quickly empty current stocks. The first vehicle manufacturers are already calling for larger quantities. China restricts crude steel production in Jiangsu by another 6 million tonnes per year. And aluminium inventories on SHFE and LME continue to fall.
EU: Rising demand for stainless steel could empty stocks quickly
With regard to the development of stainless steel inventories in Europe, a surprise surge in demand could come as a nasty surprise in the coming weeks and months.
Market sources report that European vehicle manufacturers have already started to call off quantities that were actually scheduled for the fourth quarter of 2022.
Stainless steel producers also expect an increase in demand
If the increase in demand for stainless steel from the automotive sector, which is also expected by manufacturers, continues, European stocks are likely to be exhausted quickly and there will be a scramble for the available Safeguard quotas on 1 October 2022.
Pull effect could lead to “empty shelves” again
If there is a pull here and all major buyers start to call off large quantities at the same time, the situation could quickly return to the one in 2021 and smaller and medium-sized stainless steel buyers in particular could once again be faced with “empty shelves”.
China: Jiangsu must reduce crude steel production
The measures to limit crude steel production in China continue. Now it is reported from the important steel province Jiangsu that the production of crude steel there has to be reduced by about 6 million tons per year.
Aluminium stock levels continue to fall
Aluminium stocks in LME warehouses have fallen to their lowest level in 21 years. Compared to March 2021, stocks are down by about 80%. Stocks in warehouses monitored by the Shanghai Futures Exchange (SHFE) have fallen by more than 20% since mid-March to 269,583 tonnes.
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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.
