3 August 2022 – The steel industry expects at least stable, probably even rising real demand in 2022 and is also optimistic about the automotive sector. Shares of international defence companies continue to rise. And Chinese spot import prices for iron ore have risen by almost 30% since mid-July in anticipation of higher production utilisation.
EU steel industry expect at least stable demand for 2022
Despite all the current challenges, the world’s largest steel producer outside China, ArcelorMittal, expects real demand for steel products to remain at least stable in 2022, and probably even to increase. It was also optimistic about developments in the automotive industry. For Europe, ArcelorMittal expects a significant increase in demand after the summer break.
Defence stocks with gains
Weapons manufacturers are currently leading the way in shares. Especially in view of the changing geopolitical situation. Not only in the Ukraine-Russia conflict, but also in the ongoing tensions between China and the United States over Taiwan.
Geopolitical changes drive defence spending
This was evident again yesterday when Nancy Pelosi, Speaker of the United States House of Representatives, landed in Taiwan for a visit. Even though the United States stresses that this visit does not change the One-China policy, Beijing reacted extremely disgruntled to the affront.
Heckler & Koch shares rise 7%
Shares of major US arms manufacturers Raytheon Technologies Corp (RTX.N), Lockheed Martin Corp (LMT.N), Northrop Grumman Corp (NOC.N) and L3Harris Technologies Inc (LHX.N) closed yesterday with gains of up to 2.3%. Shares in Heckler & Koch, the international German arms manufacturer, rose as much as 7% yesterday.
Demand from the defence sector always means demand for steel and armour steel, aluminium, copper and stainless steel. Especially from the military aviation and vehicle manufacturing sectors.
China: Import prices for iron ore up almost 30% since mid-July
Since mid-July 2022, spot prices for iron ore imports in China have risen by almost 30%. According to its own figures, China, the world’s largest steel producer, has to cover around 65% of its iron ore requirements through imports. In anticipation of rising production capacity utilisation at steel manufacturers in China, iron ore prices have once again risen significantly in recent days.
Latest news
- Growing demand for raw materials in emerging countries
- Nickel futures up almost 30% since mid-July 2022
- Asian base metals positive at the turn of the month
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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.
