1 February 2022 – Steel prices are rising due to optimistic demand and already well-filled order books at manufacturers. After the Lunar New Year holidays, a significant increase in domestic demand is also expected from China. Prices for intermediate products, such as steel and semiconductors, are expected to remain high in Germany for 2022. And the trading day on the LME starts on a positive note, with nickel up almost 3%.
Rising demand boosts HRC prices
HRC prices are picking up worldwide. Existing demand, the expected Chinese surge in demand after the Asian Lunar New Year holidays and strong Indian domestic demand for steel have already filled the order books of many steelmakers.
China: Rising domestic demand after holidays
China in particular is in the focus of expected price increases after the Chinese New Year holiday, following new economic stimulus measures by the government there. Domestic demand for steel products in China is expected to increase significantly.
Optimistic steel market and well-filled order books
Many Asian manufacturers had already announced price increases for February, and more and more reports of rising prices and full order books are now coming from the European Union, the CIS states and India.
Germany: Prices for intermediate products at high level in 2022
After the inflation rate in Germany hardly changed in January 2022 compared to the previous month (Dec. 5.3% vs Jan. 4.9%), analysts at Deutsche Bank expect prices for intermediate products, such as semiconductors or steel, to remain at a high level throughout the year. Especially energy costs, challenges in the supply chain and scarce availability could fuel inflation beyond the first half of the year. And currently, an ECB rate hike does not seem to be in sight.
Trading day for base metals starts positively, nickel jumps
Aluminium (+0.73%), copper (+1.25%) and zinc (1.56%) started today’s trading day positively on the European LME. Nickel is once again on a steep upward trend with a gain of almost 3% and currently stands at more than $23,000 per tonne (07:57 am, GMT).
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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.
