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EK Newsletter

2021-06-08

Limited supply continues to drive up the price of stainless steel in Europe. The average transaction value of SS 304 CR has increased by approx. 140 Euro/ton in May


A similar increase is expected in June. Prices are expected to remain high, while consumption continues to exceed demand


Most European stainless steel producers now offer 300 series coils for delivery in November/December,


However, the supply is limited during this period. Therefore, many buyers are already seeking to ensure material supply in 2022.


However, steel mills have not yet opened orders for January 2022. The market still faces the problem of insufficient quotations from overseas suppliers


Import opportunities from Asia are limited by strong demand in the region, persistent problems with container supply, and very high freight costs.


Low inventory levels throughout Europe allow distributors to successfully pass on factory price increases


The resale profit margin is high. OEMs have been paying any necessary expenses to ensure materials to keep the production line running


However, due to the lack of steel and other key components, many end users are now discontinuing production


If end users start to postpone orders, this may provide some respite for distributors, as they may gain tonnage.


However, material shortages are expected to continue to disrupt manufacturing operations through the second half of 2021


Therefore, end users face the difficulty of high cost of steel and other input materials. This, coupled with shortages, began to affect the viability of many projects,


What do you think of this situation?

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