German SSHRC Prices Jump as Car Sales and Metal Costs Rise
German SSHRC Prices Jump as Car Sales and Metal Costs Rise

German SSHRC Prices Jump as Car Sales and Metal Costs Rise

  • 08-Apr-2025 8:15 PM
  • Journalist: Timothy Greene

German Stainless-Steel Hot Rolled Coil (SSHRC) prices went up in March 2025. This increase comes as more Germans are buying cars and as the cost of nickel, a key material for making SSHRC, has gone up. Despite these gains, German steel companies are still worried about cheap imports.

Key Takeaways:

  • SSHRC prices in Germany rose 2.4% during March
  • Car sales jumped 24.6%, boosting demand for SSHRC
  • Nickel prices went up after falling for four days
  • European steel makers unhappy with EU protection measures
  • New EU import rules start April 1, changing who can sell steel to Europe
  • Local producers struggling against cheaper steel from China

The German SSHRC market did well in March, with prices going up 2.4% as more steel was needed. The car industry helped a lot - government data shows new cars were registered in March, up 24.6% from February. As car factories made more vehicles, they needed more SSHRC, making supplies tighter.

SSHRC prices also went up because nickel got more expensive. Nickel prices on the London Metal Exchange increased after falling for four days straight. When this raw material costs more, steel makers have to charge more for their SSHRC products.

Even with these price increases, German SSHRC makers face big challenges. They're disappointed that the European Commission didn't put stronger protections in place through 2026. Companies like Outokumpu from Finland want tougher measures to fight against too much steel from places like China, where government support gives those producers an unfair advantage.

New EU steel import rules starting April 1, 2025, will affect the SSHRC market until June 2026. The rules will slow down how much more steel can come into Europe each year, dropping from 1% growth to just 0.1%. While this helps local SSHRC producers a bit, many in the industry wanted even stricter limits on imports.

There's also talk about new rules on where steel is "from" - based on where it's melted rather than processed. This "melt-and-pour" rule could change SSHRC pricing and who can compete in the market. Another big discussion is about carbon emissions rules and how they might affect which SSHRC producers have the advantage.

As per ChemAnalyst, German SSHRC prices will likely keep rising in the next few months, helped by strong car sales and the new import rules. However, prices probably won't jump as much as they did in March since steel makers need to stay competitive. Things to watch include possible new stainless steel protection rules later this year, up-and-down nickel prices, and whether car sales stay strong. For German SSHRC makers to succeed long-term, they need both protection from unfair imports and solutions to their higher operating costs compared to overseas competitors.

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