This week, we’re going to take a look back at a few articles and headlines that didn’t make it into the selection. But they are interesting because they confirm certain steel trends that we have been observing and reporting on for a while now. So we are featuring them in The Weekend!
Concern over steel production in China’s Tangshan depresses coke and iron ore prices
A notice circulating in China’s steel industry threatening production cuts of between 30% and 50% for pollution offenders in the leading steel-producing city of Tangshan fueled worries about demand for raw materials on Friday, pushing prices down. Reuters agency reported today that.
“To strengthen supervision of steel enterprises and raise punishment for illegal behavior, the city government has… decided to impose production and emission cutting measures on firms that failed to take emergency action,” the statement said.
Reuters said it was not immediately able to confirm the authenticity of the document making the rounds among traders and analysts online, which said Tangshan city authorities were considering plans to cut production at steel mills for the rest of 2021.
Read more: reuters.com
We had already taken a look at the issue the past few days.
China restricts steel production – what measures come next?
SHFE nickel inventory falls 16.2% on strong EV demand
Deliverable stocks of base metals, excluding copper and aluminum, in warehouses registered with the Shanghai Futures Exchange fell in the week to Friday, March 19, 2021, with nickel registering the largest percentage drop of 16.2%. This is according to a report from Fastmarkets today (Friday).
Read more: metalbulletin.com
Nickel continues to be a major issue in the stainless steel world. That’s why it’s been in our focus as well.
Is TSINGSHAN Group benefiting from the drop in nickel prices?
Steel prices reach new record highs week after week
Raw material availability is slowly becoming a bigger problem for fabricators and other purchasers. As the fabricator headlines on its website on March 18, 2021.
Signs last month that steel prices were beginning to fall proved premature. Prices for flat and heavy plate products have continued to move upward, reaching new record highs week after week. As steel prices rise, so do the concerns of fabricators and producers who are paying unprecedented prices for their raw materials.
Steel Market Update’s review of the market on March 8 and 9 found that the benchmark price for hot-rolled steel reached $1,270/ton ($63.50/cwt), surpassing the previous high set in 2008 by $200/ton.
“That’s crazy. I can tell you one thing: My customers can’t stay in business at these prices. We’re having a hard time passing on the increases,” a Midwest producer told SMU.
Read more: thefabricator.com
We addressed the rising prices and shortages of steel and raw materials in the market here and elsewhere.
EUROFER predicts steel shortage and aims to keep hurting EU economy
CISA: China’s steel inventories to fall in 2nd quarter as demand is expected to rise
CISA has forecast that steel inventories will fall in the second quarter of the current year, while noting that rising raw material prices have eroded steel companies’ profits. So wrote steelorbis in a brief statement on March 19.
CISA vice president Luo Tiejun said the main work this year will focus on controlling production capacity and ensuring effective supply, encouraging investment in iron ore mining and changing the pricing mechanism, finding ultra-low emissions and stabilizing steelmakers’ profitability.
Read more: steelorbis.com
Our readers have been particularly focused in recent days on concerns about potential overcapacity. We have addressed these concerns.
Fear of TISCO? 18 million tons of stainless steel output in planning
US hot-rolled coil index exceeds $65/cwt for the first time
Hot-rolled coil prices in the United States have risen above $65 per hundredweight ($1,300 per short ton), and there are no signs that the rally will end anytime soon, market participants said.
Read more: metalbulletin.com
Hot-rolled coil prices in the United States just keep going up and up. And new records keep being reported. An article can be found here, among others
Stainless steel market goes crazy: Delivery times and prices continue to rise
“Last rolling shift” in Hüttenheim: Plate mill closing on schedule
In today’s day shift the last rolling orders will be fulfilled at thyssenkrupp Steel’s plate mill in Duisburg-Hüttenheim. After this final shift the rolling mill, the core of the plant, will be shut down. The final closure of the entire business unit will be completed by September 30. By that time, the remaining finished products will be shipped to customers. This is reported by marketscreener.com on March 18, 2021.
Read more: marketscreener.com
In November 2020, thyssenkrupp had announced the end for the German rolling mill.
thyssenkrupp closes plate rolling mill in Germany
The Weekend Outlook for the coming week
There are a few interesting topics for us in the coming week.
For example, what will happen with the EU Safeguard measures? Will ISTA and CAIR be joined by other associations demanding an end? In any case, the public discussion on this topic is heating up.
And what will happen to the lower-quality stainless steel grades? Will the shortage in the EU continue to worsen?
These are just two topics and our editorial schedule is already overflowing again.
So have a nice weekend now! We’ll be reading you again soon. After The Weekend!
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.