The German economy is performing better than expected, according to data published today by the Federal Statistical Office for the 2nd quarter of 2021. Metals are continuing to improve. And machinery manufacturers in the United States and Germany are seeing large order intakes.
Nickel and aluminum continued their positive trend from Monday. Prices for steel and stainless steel rose again on the Chinese spot markets.
Nickel on the LME currently stands at just above $ 18,950 per ton, with a plus of 0.36% compared to the previous day. On the SHFE, nickel was up more significantly on Monday, and by the close of trading was up about 1.24%.
The Chinese nickel spot trading intensity ratio yesterday was 101% supply versus much higher demand of 147%.
SHFE aluminum futures have closed today with about 0.69% in the plus. On the LME, aluminum is up about 0.23% at the moment.
Hot-rolled coil futures in the United States and China show positive. Just on the SHFE it went up by more than 1.4% for HRC today. Prices on the Chinese spot market for steel and stainless steel also rose again today.
Germany – In the second quarter of 2021, the German machine tool industry recorded an increase of 103% year-on-year. Both domestic and foreign orders increased significantly. A further increase is expected as supply bottlenecks and a shortage of labor currently prevent the industry from reaching its full potential.
Things are also looking very good for machinery manufacturers in the United States. Demand from the automotive industry in particular, which is investing in new equipment to produce EV vehicles, is high and has increased by more than 40% year-on-year. Overall, the U.S. auto industry plans to invest $37 billion in new plants by 2025.
The German economy grew by 1.6% (GDP, QoQ) in the second quarter, which was stronger than expected. Annual economic growth is also currently expected to be higher, with an increase of 9.8% YoY, compared with a decline of 3.4% in 2020. German economic data is expected to continue to develop well this year