In South Korea, prices for automotive steel are being increased for the first time in 4 years. In Europe, the flat steel availability crisis could worsen. And on LME and SHFE, nickel and stainless steel futures continue to rise. Waiting is currently not an option on the market.
Steel price increase to auto manufacturers in Korea
South Korean steelmakers have raised prices for automotive steel for the first time in 4 years. Market sources said an agreement had been reached between steelmakers and automakers.
The background to the automotive steel price increases is the drastic rise in iron ore prices, which have increased by almost 85% compared to the previous year.
Is the flat steel crisis worsening in Europe?
Despite full order books, Italian flat steel producer Liberty Magona is currently at a standstill and has to temporarily “lay off” its employees. The background is the financial crisis at Liberty Steel and ArcelorMittal’s decision to stop supplying coil material to the Italian subsidiary.
Are 70,000 more tons of flat steel products now missing?
The shutdown at the plant could lead to a shortfall of another 70,000 MT of galvanized and pre-painted flat steel in Europe in June. The impact on the rest of the year cannot yet be predicted.
Nickel rises after LME holiday
Nickel continued its price rise on the London Metal Exchange after Monday’s holiday, standing at around $18,370 per tonne at around 8 am (GMT+1). On the SHFE, nickel futures are also on an upward trend. Stainless steel futures in Shanghai continue to point north and are up almost 3.7% today.
Conclusion: Waiting is not an option
Even if some market voices recommend a wait and see, we say: Waiting is currently not an option in stainless steel purchasing!
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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.