17 April 2023 – Nickel prices in Asia and Europe have increased between 7.5 to about 10% since the beginning of April. Stainless steel prices continue to rise. Market conditions are robust and positive, US dividends are growing. And it’s all scrap: the big dirty hole in CBAM.
Nickel up almost 10% since beginning of April
Since the beginning of April 2023 nickel futures on the SHFE have risen by almost 10% and are now trading back above $25,000 per tonne. The LME nickel contract has followed this trend and had gained more than 7.5% by the end of last week. And this Monday morning it was trading at around $ 24,500 per tonne, a further gain of around 1.5%.
Stainless steel prices continue to rise
This rise in nickel prices, but also the more positive development on the markets, had recently spurred Chinese stainless steel prices on the spot markets and caused them to rise by more than 2.38% compared to the previous week.
Market situation remains robust and positive
US dividends grew steadily in the first quarter of 2023, according to analysts at Deutsche Bank. 135 companies in the S&P 500 have already announced a dividend or even raised it. Experts forecast annual dividend growth of five per cent until 2030
Copper prices stable
Due to falling copper inventories on the LME, which are now at their lowest level since 2005, copper prices in London, but also on the SHFE in Shanghai, are stable and on an upward trend (LME approx. $ 9,000/MT, SHFE approx. $ 9,300/MT). Recently, the voices that had warned urgently of a continuing shortage and undersupply of copper had increased again.
Container shipping with record orders
Media reports that the container shipping industry has reached a record order book of 7.54 million TEUs (Twenty-foot Equivalent Units), indicating a major shift in the industry. Increased demand in the industry has led to a surge in orders for new ships, and major shipping companies are investing heavily in new vessels.
Industry expects increase in world trade
These necessary investments are also expected to improve efficiency in container transport, reduce carbon dioxide (CO2) emissions and increase available capacity. Furthermore, the demand for cargo space in the container sector is expected to continue to grow in the coming years as global trade is expected to increase and new markets emerge in Asia and Africa.
All scrap: The big dirty hole in CBAM
CBAM or the EU Carbon Border Tax is an important component of the European Green Deal. Although the measure is supposed to contribute to a reduction of CO2 emissions, it is becoming more and more apparent that the EU’s own CO2-intensive industry, above all the EU steel producers, are to be protected and given preferential treatment with obvious loopholes and hollow justifications that border on stupidity. But the green steel bubble could soon belong on the scrap heap. Because there is a huge dirty hole in CBAM.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.