Stainless steel supply issues persist in Europe due to ongoing industrial action, but have only had a limited impact on material availability so far, according to a report by MEPS International's Stainless Steel Review. The report highlights that Outokumpu in Finland advised its customers of a 14-day shutdown of its stainless steel and ferrochrome operations, as well as the Tornio port, due to political strikes. The Finnish labour unions subsequently announced an extension of the strike action until March 31, and then again until April 8. In Spain, Acerinox workers at the Los Barrios plant in Cadiz entered a seventh week of strike action due to disagreements on several key issues, including salary revision, production bonuses, flexibility, partial retirements, and promotions. The report notes that buyers are being offered May and June deliveries for new production orders, and that some are reporting distributor prices of EUR2,650 per tonne for 304 cold rolled sheet in Germany and Italy. The report also notes that the MEPS European average transaction values for 304 and 316 hot and cold rolled coil increased in March due to the supply disruptions at Acerinox and Outokumpu. However, distributors are struggling to pass on any rises to their customers due to low demand, resulting in squeezed margins. The report notes that low margin prospects on locally produced material, combined with delivery delays and extending lead times on new production, have renewed the appeal of imports. Several buyers have placed orders with Taiwanese and Turkish steelmakers, despite the investigation's provisional findings on proposed duties on Indonesia-origin material outlined by the European Commission. The report notes that import offers increased in March due to a rise in nickel prices, but still present buyers with a saving when compared with European mills' prices. The report concludes that it is likely that uptake of the EU safeguard measures' quotas for Taiwan and Turkey will be greater in quarter three than in previous quarters.
