USA, Germany And Other 4 Countries Are In Steel Shortage

USA, Germany And Other 4 Countries Are In Steel Shortage!

Publication Date: 2021-05-28

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With the gradual recovery of the global economy, the demand for steel in many countries has become increasingly strong. The United States, Germany, South Korea and Vietnam have even experienced "steel shortages".
China's steel market is also relatively large fluctuations, as of the middle of May, the domestic eight steel varieties of steel per ton of the average price broke through 6,600 yuan, a year-on-year increase of 75%.
In order to stabilize the domestic steel market, China Iron and Steel Association once again, the iron and steel industry put forward 7 self-regulation initiative.
The proposal said that steel companies should adjust their export strategies according to the country's latest steel import and export policy, and promote exports of high value-added products while ensuring domestic supply.

As the world's largest steel producer and exporter, if Chinese steel enterprises adjust their export strategy and reduce the steel supply to the international market, it may have a significant impact on the United States, Germany and other countries that are short of steel.This is especially true at a time when the US needs a lot of steel, as it proposes a $1.7tn infrastructure plan.

Arguably, Australia has screwed the US this time. On May 14, the Platts iron ore index climbed to an all-time high of $229.55 a tonne, according to market data. As the world's leading exporter of iron ore, Australia is making a lot of money on iron ore. Steelmakers, such as those in China, can pass on rising costs to steel-starved countries such as the U.S. through exports.
However, iron ore prices fell 17.5 per cent from their all-time high on May 26, following five price controls imposed by the Chinese authorities in May. The association also urged steelmakers to resist vicious competition and price gouging that was well above cost during the surge in steel prices. Market chase up the phenomenon, indeed magnify the steel price fluctuations.

Industry analysis pointed out that in the future, with the adjustment of China's export tax rebate policy, the latest initiative of China Iron and Steel Association gradually play a role, domestic supply will increase, iron and steel prices, iron ore prices will gradually return to a reasonable range.

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