24 March 2022 – Chinese stainless steel prices continue to rise. Already by almost 30% since December 2021. LME nickel +15% and SHFE nickel +17% today. Aluminium at over $3,600 per tonne. In addition, UK and US agree on a Tariff Rate Quota (TRQ) for steel and aluminium.
Nickel jumps again by 15%
Nickel on the London Metal Exchange (LME) has already hit the 15% mark again shortly after the start of trading and is currently trading at around $ 37,234 per tonne.
After yesterday’s questionable intervention in trading by the LME, we expect the same today. Short positions, if they have not yet been cleared, are likely to pose a danger again.
SHFE nickel up 17%
However, regardless of what the LME does, it is worth looking at the Chinese nickel price. The SHFE contract ni2204 has also jumped 17% today. At the same time, spot prices have also risen by more than 15% to around $38,614 per tonne nickel.
UK and US agree on deal to end steel tariffs
The UK and the US have agreed a deal on Section 232 Tariffs on steel and aluminium. Similar to its neighbours in the European Union, the UK will get a tariff rate quota on steel and aluminium exports. However, the basic condition is that, for example, the 500,000 tonnes of S232 free steel have been melted and poured in the UK. In this way, the US government primarily wants to prevent Chinese steel from entering the United States in a roundabout way.
For the UK economy, however, the loss of 500,000 tonnes of steel to the United States is likely to be an additional sting to deal with.
Stainless steel and aluminium prices continue to rise
Stainless steel futures prices also rose sharply today on the back of soaring nickel prices on the SHFE. Futures are up as much as 7% on average. At the same time, spot market prices for stainless steel are rising by almost 4%. This means that Chinese stainless steel prices have risen by almost 30% since mid-December 2021.
Aluminium jumped about 5.5% yesterday, rise continues
After jumping by around 5.5% yesterday, aluminium prices on the LME are continuing their trend today. At the start of trading, aluminium went up by almost 1.2% and is currently holding at just under $3,700 per tonne.
There are also reports from China that aluminium inventories at processing companies are continuing to fall sharply. And no significant increase is expected in the coming weeks.
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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.
