Packaging
Steel & Aluminium
The US steel hot-rolled coil (HRC) price on the CME decreased in December by 14% m-o-m, but
was up by 35.5% y-o-y to a monthly average price of USD 1,371/MT. The m-o-m decline is due to
limited spot market activity. Lead times have continued to decline and are currently below the 10year
average. In December, Northern Europe steel HRC decreased by 1.7% m-o-m and increased by
62.4% y-o-y, to EUR 971/MT, due to a slowdown in demand. The automotive industry continued to
struggle with global semiconductor shortages that curtailed car production substantially in 2021. Two
factors will likely determine 2022 steel supply and demand: material uptake by the automotive
industry and the outcome of trade barriers, such as import quotas and anti-dumping duties on steel
imports into the EU.
The LME aluminium (3-month) price increased in December by 1.9% m-o-m and by 34.1% y-o-y, to
a monthly average price of USD 2,707/MT, as surging energy prices have raised concerns of higher
production costs and aluminium smelter shutdowns. The gas price surge has inflated Europe's power
costs and caused some aluminium production curtailments in Europe. The high-power costs are
expected to fuel further rises in aluminium prices in the short-term.
1,300
1,200
1,100
1,000
900
800
800
550
300
1,050
1,300
1,550
1,800
2,050
Dec 19
Steel HRC - USD/MT & EUR/MT
Mar 20 Jun 20 Sep 20
HRCN - Steel HRC (CRU) CME US
Dec 20 Mar 21 Jun 21 Sep 21 Dec 21
1K01 - Steel HRC dom exw N Eur (right axis)
700
600 1,700
500
400 1,300
2,100
2,500
2,900
3,300
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Aluminium LME - USD/MT
Sep 20 Dec 20 Mar 21
LN02 - Aluminium 3m LME
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