Steel prices today increased to 4,337 yuan / ton on the Shanghai Exchange. MEPS has raised its forecast for global crude stainless steel production to 56.8 million tonnes in 2021.
Steel prices today maintain upward momentum
Steel price today delivered in May 2022 on the Shanghai Exchange increased by 41 yuan to 4,337 yuan/ton at the time of the survey at 9:00 (Vietnam time).
| Type name | Period | December 3 | Difference from previous transaction |
| Copper price | Delivered in January 2022 | 69.140 | +40 |
| Zinc price | Delivered in January 2022 | 23.020 | -50 |
| Nickel price | Delivered in February 2022 | 147.710 | -290 |
| Silver price | Delivered in June 2022 | 4.720 | -8 |
| Steel price | Delivered in May 2022 | 4.337 | =41 |
Iron ore chart at Shanghai Exchange (Source: Shfe)
Indonesian production has skyrocketed this year. Domestic mills are expected to produce more than 4.5 million tons in the current 12-month period. It is expected that Indonesia will overtake India to become the second largest stainless steel producer in the world.
In China, government directives introduced to limit steel production in the first six months of 2021 have since been enforced more strictly.
Power allocation in October, due to coal shortages, led to further cuts in output. Moreover, the crisis at Chinese real estate company Evergrande is also negatively affecting steel consumption in the construction sector.
Taiwan’s steel production is forecast to increase to 925,000 tons this year. An industrial fire at a major domestic rolling steel mill failed to cut shipments in the third quarter.
Thanks to outstanding financial results, stainless steel producers in Japan and Korea are expected to increase their annual smelting operations by more than 20% and 12%, respectively.
Photo: Freepik
In India, stainless steel production fell in the second quarter of 2021. The spike in COVID-19 cases in the country prompted the government to enforce shutdown measures again.
By the third quarter, after the crisis was eased, rolling mills are said to have ramped up production to meet the recovering demand from end users.
European stainless steel production is forecast to total 7.06 million tons. Bad weather in the middle of this year had less impact on steel production than initially expected. Therefore, output figures in the fourth quarter are expected to increase.
In the US, production is forecast to reach 2.5 million tons, up more than 16% year-on-year. However, the annual economic situation is unlikely to return to pre-pandemic levels in 2022. The shortage of stainless steel, especially cold rolled coil, may be a feature of the domestic market in Short-term.
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