As mentioned above, China does not seem to be slowing down its stainless steel production.
Moreover, a few steelmaking Chinese companies, such as Tsingshan Holding Group and Delong Holdings have invested U.S. $16 billion. They also plan to invest, along with other firms, approximately U.S. $20.9 billion by 2024 and U.S. $35 billion by 2033.
The investment will aim to expand nickel production for steelmaking — which currently accounts for nearly 70% of nickel consumption — and, eventually, for electric vehicle batteries.
This type of investment may help ensure the steel market does not compete with the electric vehicle market for nickel supply.
Actual metals prices and trends
The Allegheny Ludlum 316 stainless surcharge decreased 1.1% month over month to $0.92/pound. The 304 surcharge dropped 2.8% to $0.69/pound.
LME primary three-month nickel increased 5.4% to $15,289/mt.
Chinese 316 cold-rolled coil rose to $3,152.69/mt. Meanwhile, Chinese 304 cold-rolled coil rose to $2,368.25/mt.
Chinese primary nickel increased 5.3% to $17,646.09/mt. Indian primary nickel rose 6.2% to $15.26/kilogram.
FeCr lumps increased 1.6% to $1,553.93/mt. As noted earlier, it remains to be seen if South Africa will go forward with its proposed chrome export tax.
Post time: Nov-23-2020