STEEL NEWS

MEPS: EU stainless steel imports are constrained by container shortages

According to British analytical agency MEPS International Ltd., the cost of container shipments from Asia to Europe has grown significantly over the past few months. And right now, EU stainless steel buyers are faced with long lead times and rapidly rising prices from local producers.

The most notable products to be touched upon are the 300 and 400 series cold-rolled rolls.

As a result, customers are increasingly turning to suppliers from third countries, despite the current EU import protection measures. However, if buyers are able to obtain steel from an overseas plant, they will face transportation difficulties - a byproduct of the coronavirus pandemic. This includes the rapid rise in shipping costs due to an acute shortage of containers in Asia. Freight rates are now around $ 10,000 for a 40 'container between Asia and the EU. This significant increase in transport costs is difficult to offset, especially at a time when stainless steel prices are also rising rapidly. In addition, the lack of containers in Asia leads to delays in the transit of material.

The Covid-19 outbreak has led to the movement of containers around the world. During the first wave of blockages in Europe early last year, containers from Asia were still arriving at the docks. However, due to closed markets in many destinations and the closure of manufacturing facilities, many ports struggled to process incoming shipments. There has been some permutation of offload priorities based on content. Vessels that arrived with huge quantities of medical equipment were often the first to disembark.

Many ports around the world continue to grapple with a shrinking workforce as viral infections and strict quarantine regulations limit the number of employees at the facility.

Many stainless steel buyers believe that operational disruptions and high shipping costs are likely to continue through the first half of 2021.