TELF AG Update on Stainless Steel Market Developments – June 17, 2023

Relevant developments

This article will discuss two significant developments in the stainless steel market that have implications for TELF AG and its customers. These developments include POSCO’s pricing strategy for austenitic stainless sheets and the United States’ decision to extend the suspension of tariffs on Ukrainian steel.

POSCO’s Pricing Strategy for Austenitic Stainless Sheets:
According to recent reports, Korea’s POSCO, a major stainless steel producer, has chosen to maintain its domestic prices for austenitic stainless sheets for the June shipment. While some Taiwanese steel mills have increased their prices for certain grades, POSCO is expected to negotiate individually with customers to maintain price stability. It is noteworthy that POSCO had previously announced a price increase of 100,000 won (US$77) for April and May shipments. Still, the price increase did not gain traction due to weak domestic demand and challenges in securing quantities. The company faces concerns over potential increased imports from Chinese mills and customer requests for price reductions amid declining nickel prices. Demand for austenitic stainless sheets remains subdued in Asia, including Korea.

Extension of Tariff Suspension on Ukrainian Steel:
In a move that impacts the global steel market, the United States has decided to extend the temporary suspension of tariffs on Ukrainian steel for an additional year. The initial suspension was implemented in May of the previous year. Notably, the European Union has also agreed to suspend import restrictions from Ukraine for another year. The imposition of a 25% tariff on steel imports from countries, including Ukraine, occurred in 2018 under the administration of former President Donald Trump. In February 2022, U.S. lawmakers, including President Joe Biden, faced mounting pressure to remove the tariffs. The extension of the tariff suspension is a positive development for Ukrainian steel exporters and contributes to stability in the global steel trade.

Implications for TELF AG and Customers:
These market developments have implications for TELF AG and its customers. The stability in POSCO’s domestic prices for austenitic stainless sheets offers predictability and allows the key players to plan their procurement strategies effectively. By engaging in individual negotiations, the industry can work closely with customers to meet their needs while maintaining competitive pricing.

The extension of the tariff suspension on Ukrainian steel by the United States presents an opportunity to explore potential collaborations with Ukrainian steel manufacturers. This decision contributes to a more favorable trading environment and fosters global stainless steel market stability. The industry can leverage this development to enhance its supply chain and expand its product offerings, providing customers with a wider range of options.

In conclusion, TELF AG remains committed to monitoring and adapting to the dynamic stainless steel market. The latest updates on POSCO’s pricing strategy for austenitic stainless sheets and the extension of the tariff suspension on Ukrainian steel highlight the industry’s evolving landscape.