On June 21, 2012, the steel billet cash price experienced the biggest change on our daily steel price index, rising 1.4 percent on the LME to $350 per metric ton. Also on the LME, the 3-month price of steel billet inched up 1.4 percent to $360 per metric ton.
This change comes amidst news that German banking giant Deutsche Bank is dropping LME billet in favor of the CME’s billet swaps contract in its derivatives business. Deutsche Bank will also use CME’s upcoming scrap swaps contract. “CME Group said this week that it plans to launch a U.S. steel scrap contract to expand its offering of ferrous derivatives, aiming to cash in on growing interest in price-risk management in the sector,” according to Reuters.
Meanwhile, Chinese steel prices closed flat for the day. The high and low prices of iron ore 58% fines from India ranged between $130 and $135 per dry metric ton. The price of Chinese HRC held steady between $600 and $700 per metric ton. The price of Chinese coking coal saw little movement.
The 3-month price of US HRC futures contract has been on the rise for seven days and is now at $635 per short ton. For the fifth day in a row, the spot price of US HRC futures contract remained essentially flat at $620 per short ton.
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