EU and the United States, stainless steel may be out of stock throughout 2021

Recently, the price of stainless steel in the Chinese market has risen significantly, which has aroused people’s attention. In fact, not only the domestic market, but also Europe and the United States are also staged a feast of stainless steel shortages and price increases.

In April 2020, European steel producers and Eurofer requested that their European steel and stainless steel import quotas be reduced by 75%. Due to the epidemic, the European steel industry will need additional protection. Looking at the current point in time, fortunately, this demand was rejected by the European Union. Otherwise, the EU will now face an even more severe steel shortage situation in the entire European economy.

In fact, since the fall of 2020, market news has reported that European steel and stainless steel are seriously out of stock. The United States has repeatedly reported that materials there are out of stock.

At the beginning of December 2020, steel supply will be tight. At least in the first half of 2021, some people believe that steel production will not return to the level before the epidemic until the beginning of 2022.

At the end of 2020, related reports stated that steel prices in Europe will rebound. Due to the continuing shortage of European steel and stainless steel. At that time, steel mills had already begun to accept futures for April and May 2021.

Trade protection measures will expire in June 2021, Eurometal calls on the EU to take care of downstream industries. They strongly stated that if the price and capacity utilization remain so dramatic, the European market will soon no steel products are available.

 

Not only the European Union was hit hard, but American steel buyers also complained about soaring prices and long delivery times.

Reuters reported that the downstream industries in the United States are currently facing a severe shortage of steel and rapid price increases. The Union of Metal Manufacturers and Users of the United States (CAMMU) called for the termination of section 232 tariffs a few days ago.

At present, the EU and US stainless steel markets have no signs that the conditions of their stainless steel markets will improve significantly. Throughout 2021, even if steel mills in Europe and the United States are producing at full capacity, their market trade barrier measures also hinder many import opportunities. Therefore, the EU and US stainless steel market shortages will continue for a period of time, possibly until the end of 2021, and more likely until 2022.

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Post time: Feb-25-2021