Jul 28, 2023
EU import quotas for some steel products already exhausted – Stainless Espresso

2023-08-04
28 July 2023 – Everything so bad in the market? It doesn’t seem so, as it turns out that some of the EU Safeguard import quotas are already well filled, such as for stainless steel bars. And US homebuilder stocks are up a good 50% since the beginning of the year.


EU import quotas for some steel products already exhausted
Everything so bad in the market? It does not seem so, as it turns out that some of the EU Safeguard import quotas, e.g. for HRC, tin mill products or large welded pipes from some regions are already exhausted. For stainless steel bars, too, the quota for India has already been exhausted and that for other countries has shrunk to a few tonnes.


In any case, the demand for steel and stainless steel seems to be there. The filling quotas, also for other products, indicate an existing demand. Especially for stainless steel bars, alternatives are now likely to be in demand.


US house builders make an impression
US homebuilders have seen their shares rise remarkably since the beginning of the year, by almost 50 per cent compared to the S&P 1500 Homebuilding Index. During the reporting season, companies have posted impressive results, with earnings reported to date averaging more than 30 per cent above analysts’ expectations. However, housing affordability has been reported to continue to impact demand.


Price targets raised further for house builders
Despite the challenges posed by the shortage of existing homes, builders were able to increase their market share and slightly raise the selling prices of new homes compared to the previous quarter. This led to positive surprises in margins, new construction sales and housing starts. In response to these robust results, analysts have raised their price targets for the homebuilders, which should further support the shares.


Source: Steel News

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