As reported by the British analysts from MEPS global stainless steel markets are changing under the impact of the pandemic coronavirus COVID-19. With the development of the situation, some suppliers close or reduce production due to lack of demand on the secondary market. In other countries, the trade suspended by the action of regional governments to combat the spread of the virus.
In some regions, the markets become more localized, because the conditions vary depending on the severity of the outbreak and the subsequent actions of individual national authorities. For example, in Europe the factories of the Finnish company Outokumpu heavily loaded with orders, providing material to customers in the North of the continent. In many cases, this replaces supplies that are no longer available from Italy and Spain, where operations have been suspended, according to government regulation.
the West looks to the East
the Progress of the coronavirus and its impact on stainless steel markets are more noticeable in the far East. In China, where production in recent months continued to grow rapidly relative to consumption, increased inventory levels of stainless steel. The supply glut persists in all Asian markets, where the pandemic has affected the demand of the end user is not as strong as in many Western countries. The volume of production in the region is now growing, since the restrictions were gradually removed.
This material can replace the supplies to those parts of the world where production is currently depleted. Individual customers - for example, in the United States and the European Union expressed its desire to weaken trade measures to increase the availability of supplies from other countries.
This change of time can have long-term implications for the global stainless steel market. If the Asian manufacturers will be strengthened on the European and North American markets, buyers can get used to a plentiful supply of cheap material. Local steel mills may face difficulties in recovering their share of the business lost during the period of quarantine.
