7 March 2024 – The strike at Spanish stainless steel manufacturer Acerinox has been going on for 31 days and there is still no end in sight. A possible round of negotiations yesterday (Wednesday) has been cancelled. What happens now? And the commodity markets are looking favourable today and have responded very well to the announcement by US Federal Reserve Chairman Powell that interest rates will remain stable for the time being.
Strike at stainless steel manufacturer Acerinox continues irreconcilably
Today, Thursday, marks the 31st day of strike action at Spanish stainless steel manufacturer Acerinox. After the strikers postponed a demonstration planned for today, Thursday, in front of the Acerinox Group headquarters in Madrid to demonstrate goodwill and initiate a new round of negotiations, the company categorically rejected this on Wednesday afternoon, according to media reports.
Will the Spanish mill be out of action for weeks to come?
The reason given: The strike is illegal. The strike committee would therefore have no legal representatives. The date for the first hearing before a Spanish court is not scheduled until 22 March. This means that the Spanish stainless steel mill is likely to be out of action for weeks, and making a demonstration in Madrid much more likely. Spanish media are already speculating that there could be a further escalation of strike action by the workers.
Basic metals show a favourable trend
Commodity prices in Asia have been extremely favourable today. In particular, iron ore futures on the DCE have risen by more than 1.8%, but zinc and tin futures on the SHFE have also recorded gains of 1.5% and 1.2% respectively.
In Europe, however, base metals tin, lead, zinc, aluminium and copper also recorded increases of up to 1% and more in yesterday’s trading and today’s Thursday trading. Asian and European nickel futures are also continuing to hold up well.
US FED sticks to stabilisation course
In addition to an increasingly buoyant global economy, the testimony made by Jerome H. Powell, Chair of the US Federal Reserve, yesterday (Wednesday) before the US Congress also contributed to the rise in raw material prices. Although the Fed continues to hold out the prospect of interest rate cuts this year, it wants to wait to ensure that the fall in inflation is actually secured.
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