Scrap protectionism: Russia extends ferrous scrap export quotas
Russian Scrap Export Restrictions:
The extension of export quotas for ferrous waste in Russia until June 30, 2024, suggests the country’s recognition of the strategic importance of recycling raw materials.
Continued restrictions may impact global scrap markets, influencing prices and availability.
Increasing Chinese Demand for Stainless Steel Scrap:
China’s significant increase in stainless steel scrap imports (over 200% YoY) indicates a rising demand for this raw material.
This surge could be driven by China’s growing stainless steel industry, possibly linked to infrastructure development or manufacturing activities.
Asian Nickel Prices:
The 3% rise in Asian nickel prices on the Shanghai Futures Exchange (SHFE) reflects positive sentiment, possibly driven by factors like increased demand or supply chain dynamics.
Mexico’s Economic Boom: Nearshoring and Stock Market Performance:
Mexico’s stock market’s strong performance, driven by a 23% increase in 2023, is attributed to the strength of the Mexican peso and nearshoring activities.
Nearshoring, the relocation of production facilities close to the US market, has played a pivotal role in Mexico’s economic success.
Nearshoring Trend and Mexican Economic Outlook:
International companies relocating production to Mexico are contributing to the country’s economic growth.
The Mexican central bank’s optimistic growth forecast for 2024 (between 2.3% and 3.7%) reflects confidence in the nearshoring trend and overall economic conditions.
Booming Investments, Rising Wages, and Consumer Demand in Mexico:
Despite high capital market interest rates, investments in Mexico are thriving.
Rising wages and booming consumer demand contribute to positive economic indicators, suggesting potential for sustained growth.
Mexico’s current economic momentum presents an opportunity for the country to establish itself as an economic hotspot.
Continued success will depend on factors such as maintaining a favorable business environment, adapting to global economic changes, and effectively managing the nearshoring trend.
In summary, Mexico’s economic prospects seem promising, driven by nearshoring activities and positive economic indicators. The challenge lies in sustaining this momentum and navigating potential challenges in the global economic landscape.
Full story – Stainless Espresso by Gerber Group