September 16, 2021 – Procurement concerns for Chinese stainless steel have caused futures on the SHFE and spot prices to jump upwards. In Italy, a winner is emerging in the battle for stainless steel producer Acciai Speciali Terni. And the OECD is secretly critical of European carbon border tax plans.
Stainless steel: Procurement concerns drive up prices again
Due to production cuts and new Covid19 outbreaks, procurement concerns for stainless steel are going around in China. As a result, stainless steel futures on the SHFE have climbed to new highs. Stainless steel futures were up by up to 7% on average. Spot prices on the Chinese market also reacted with a significant increase, rising in some cases by more than 6%.
Source: shfe.com.cn
AST: Outcome seems clear. Did the Asians lose? No.
According to Italian media reports, the outcome of the sale of Italian stainless steel producer Acciai Speciali Terni (AST) increasingly seems to point to a national winner. The Chinese Baowu Group and the South Korean steel group POSCO have reportedly already dropped out of the race. This means that only the Italian groups Marcegaglia and Arvedi Group would still be interested in buying the company.
Update: thyssenkrupp sells AST to Italian Arvedi Group
According to official announcements from thyssenkrupp, the company has decided to sell Acciai Special Terin to the Arvedi Group.
Have the Asians lost? No.
It is questionable whether the two Asian steel giants Baowu and POSCO were actually seriously interested in buying AST. But they may definitely have achieved one goal: They gained up-to-date knowledge about a potential competitor and deep insights into the European steel market.
Carbon Border Tax CBAM: OECD secretly critical of EU plans
The OECD has again called on the European Union to join a community plan for a carbon price. However, the EU has so far shown little or no interest in this and is forging ahead with its Carbon Border Tax CBAM. To the great delight and instigation of European lobbyist groups.
OECD officials unofficially critical of CBAM
OECD officials are secretly critical of the EU’s plans, fearing that far too high taxes could be imposed on imports into the Union.
United States warns EU against carbon border tax
U.S. climate envoy John Kerry also warned Europeans back in the spring not to back a carbon border tax and to use it only as a last resort.
EU trading partners upset about hidden tariffs
Many of the European Union’s trading partners see CBAM as just another hidden tariff on undesirable imports – such as steel or cement – and criticize the planned measure.
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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.
