While nickel has continued to rise on SHFE and LME and the other metals are also on the upswing, Russia wants to introduce export taxes on steel, nickel, aluminum and other products. In the United States, steelmakers face up to 164 more days of maintenance by the end of 2021 – which could result in a calculated loss of up to 1.3 million tons of steel. And the U.S. infrastructure plan appears to be on the verge of a breakthrough. Meanwhile, the EC continues to tighten the supply of corrosion-resistant steels. And EU steelmakers continue to raise prices.
SHFE: nickel surpasses 138,000 yuan per tonne
Nickel futures on the SHFE surpassed 138,000 yuan per ton (about $21.384 per ton) on Friday, June 25, 2021 – up 2.6% from the previous day. Nickel also had its current high on the LME today at around $18.577 per ton. Currently, most other metals are also trending significantly higher.
Source: shfe.com.cn, lme.com, dce.com.cn
Russia to introduce temporary export taxes on metal products
Russia, an important supplier of raw materials and metals, plans to introduce temporary taxes on steel, nickel, aluminum and copper exports. These are intended to help cool domestic inflation after prices surged amid a broad-based commodity rally.
Russian metal tariffs at min. 15% from August 1
The Russian government is proposing that a tariff of at least 15% take effect from Aug. 1 through the end of the year, with each metal also having a specific tariff, Economy Minister Maxim Reshetnikov said. The tax will be levied depending on which rate is higher, a ministry spokeswoman said by e-mail.
The move is the latest in a series of steps by nations around the world to combat rising prices for raw materials and other essential goods.
U.S. steelmakers: 164 days of maintenance through end of year
U.S. steelmakers report up to 164 days of planned maintenance at key blast furnaces and production facilities through the end of the year. That will result in a projected loss of about 1.3 million tons of steel production in the United States.
Biden says deal reached on infrastructure plan
U.S. President Joe Biden said Thursday that a deal had been reached on an infrastructure spending plan as he came out of a meeting with a bipartisan group of senators.
“We have a deal,” he told reporters at the White House after meeting with members of the so-called Group of 21, which has sought bipartisan agreement on an infrastructure bill.
Tight supply situation for U.S. steel products
The already tight supply situation for steel products in the United States is therefore unlikely to improve significantly until at least the end of the year as a result of these two announcements – the shortfall of 1.3 million tons of steel from US steelmakers and the US infrastructure plan – and may even deteriorate further.
EC launches new anti-dumping case against Turkey and Russia
The European Commission officially announced on June 24, 2021 that it is initiating an anti-dumping proceeding concerning imports of certain corrosion-resistant steels originating in Russia and Turkey.
Affected are corrosion-resistant steels from HS categories 7210, 7212, 7225 and 7226.
As we reported in advance yesterday, this new AD procedure had already been expected.
EU steel producer increased prices again
Another EU steel producer has again raised prices by EUR 30 per ton. This brings HRC prices in Europe to over EUR 1,200 per ton, according to market sources. HRC lead times in the EU are now Q4 2021 and for HDG and CRC products already Q1 2022.
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