Spot prices for steel and stainless steel have risen further in Europe, China and Russia. Trend continues to be driven by high demand and tight availability. Goldman Sachs on Commodities: “You Name It, We’re Out Of It”. Despite possible interest rate hike: European economy to continue growing strongly.
Rising prices for steel and stainless steel are currently being reported not only from Europe but also from Russia and China.
In the three major steel producer and consumer regions, demand for HRC, CRC and HDG is increasing, especially in the automotive sector. Due to limited availability, restricted production capacities and high raw material costs, the increased demand can only be met to a limited extent. In China, HRC futures have climbed to their highest level since October 2021.
In addition to a renewed increase in stainless steel futures on the SHFE of around 1.14%, spot prices for stainless steel in China have also risen significantly, in some cases by up to 5%. Here, too, the limited supply from China, the high nickel price and increased costs for stainless steel scrap determine the trend of the spot prices.
And this trend does not seem to be over for the time being, if one looks at the current assessment of Goldman Sachs analyst Jeff Currie: “We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
This is something that should definitely be considered in one’s sourcing strategy for 2022.
Jeff Currie, economist and head of global commodities research at Goldman Sachs Global Investment Research, recently said that all commodity markets are currently experiencing shortages. He noted that in his 30-year career he has never experienced a shortage like the current one.
“I’ve Never Seen A Market Like This”: Goldman Sees Shortages Of Everything, “You Name It, We’re Out Of It”
Deutsche Bank sees a good chance that growth in the euro zone would hardly be slowed by a turnaround in interest rates by the European Central Bank, despite possible increases in key interest rates.
Liquid assets are abundant due to monetary policy, which has been kept very loose for a long time. And the still unbroken demand from the manufacturing industry and the backlog of orders and postponed investments that still have to be made up, plus the ongoing stimulus programs of the European Union and the EU member states, should continue to fuel economic growth.
Despite a possible tighter monetary policy by the ECB, the current situation should mean a solid fundamental environment and further rising corporate earnings for investors and stock markets..