RESEARCH: EU set to impose import duties on Indian, Indonesian stainless steel

The latest forecasts from Fastmarkets' team of analysts is ready to view.

Stainless steel prices and margins for stainless steel producers have risen notably over the past few months in both Europe and the United States, but there are now signs that the rally is petering out.

A clear reason for the halt to rising prices comes from the near 20% drop in nickel prices seen in late February/early March, which has now been passed on to consumers via the alloy surcharge mechanism.

Yet the rally in base prices and the effective margins enjoyed by producers also appear to have been halted this month.

One reason for this is that prices in Europe and the US have become increasingly decoupled from those in Asia. And even in a global market, which is increasingly burdened by various restrictive trade measures, this decoupling can only go so far. Indeed, as we discuss in our Europe analysis this month, imports are looking increasingly attractive to some consumers – even after the application of various trade duties.

Trade policies in Europe and the US are, therefore, of key importance.

Upcoming rulings in Europe – on imports from India and Indonesia, in particular, and then on the region’s wider trade safeguard measures – will have a key impact on local markets. Stainless steel producers and consumers in this region, as well as those in the US, are increasingly squaring off against each other in lobbying for different outcomes with regards to trade policies.

But the economic and political backdrop in both regions makes it difficult to envisage any major changes to policies and thus, while the gaps between prices in Asia and those elsewhere may not widen much further, they are unlikely to quickly narrow back toward the levels seen only a couple of years ago.

Click here to view the Stainless Steels tracker in full. If you are not a subscriber but would like to see a free sample report, please click here.

What to read next
In the open consultation, Fastmarkets FOEX did not propose any changes and the feedback received was fully supportive to our current methodology. No material changes were made to the current methodology. A newly dated methodology document will be posted soon. For all Fastmarkets FOEX pricing notices and to view our methodology guides please see here.
This consultation, until which is open until June 24, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications, and publication frequency. You […]
For comments and queries, please email hello.foex@fastmarkets.com, indicating “PIX Pellet Nordic Index” in the subject line of the email.
The European Union Regulation (EUDR) mandates that products must be deforestation-free, produced in compliance with relevant laws, and accompanied by a due diligence statement containing precise geographic coordinates.
A host of Chinese battery manufacturers have been increasing their production of electrolytic nickel to reap gains from strong futures prices because the growth in downstream demand for electric vehicles (EVs) is slowing, Fastmarkets heard on Tuesday May 21
Fastmarkets invited feedback from the industry on the methodology for its audited lithium and spodumene price assessments, via an open consultation process between April 18 and May 17, 2024. This consultation was done as part of our published annual methodology review process.