19 January 2024 – Asian stainless steel futures have recovered significantly since the beginning of December 2023, rising by more than 10%. And the tech giants in the S&P 500 have posted a return of 100% in 2023.
Stainless steel futures up over 10% since the beginning of December
Stainless steel futures on the SHFE have recovered significantly since the beginning of December 2023 and have risen by more than 10%. The rise in futures is likely due to market participants’ expectations of rising demand for stainless steel in the coming months.
Raw material costs remain high and interest rates stable
At the same time, however, raw material costs are now much more stable and the expectation of largely stable interest rates from the US Federal Reserve and the European ECB in the first half of 2024, and possibly also in the second half of 2024, should provide further incentives.
Opportunity ahead of the Asian spring festival
The market’s expectation of a further increase in demand and therefore also prices after the Asian New Year could therefore now prove to be an opportunity for one or two bargain purchases in Asia.
Tech titans rock the market: 100% return in 2023
The seven largest technology companies, also known as the “Magnificent Seven”, achieved an incredible return of 100% in 2023 – leaving the S&P 500 average far behind.
Valuation still in line
Despite the rally, the tech giants are currently valued more favorably than in the boom years of 2020-2022. With a price/earnings ratio of around 27, they are still a long way from the peak values beyond 35.
Growth meets solid finances
The top techs, which expect annual sales growth of 11% until 2025, are growing almost three times as fast as their competitors in the S&P 500. With a profit margin of over 20%, they are also in top financial shape and often even debt-free.
Optimistic outlook for 2024 too
Even if last year will be difficult to top, the outlook for the tech heavyweights remains rosy.
- EU new car registrations and US sales up significantly in 2023
- Stainless steel anti-circumvention: Is the EC facing an administrative disaster?
- Nickel: Indonesia falls far short of production targets in 2023
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
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.