Source: MetalMiner IndX℠
The monthly Raw Steels MMI® registered a value of 87 in September, on par with August’s value.
“We can see how recent steel producers’ announcements of a worsening economy could impact earnings (and steel prices) throughout the second half of the year,” said Lisa Reisman, MetalMiner’s managing editor. “Our steel price index highlighted conflicting signals that indicate some steel price weakness at least throughout the end of this quarter and into the fourth quarter.”
“The only elements lending support to the overall reading include scrap prices, which saw price increases from one month ago as well as a jump in the CME HRC spot price,” Reisman continued, “but the remaining complex appears weak as prices in China fell across the board as did billet prices.”
“In addition, steel buyers may wish to pay close attention to the CME HRC forward price curve as the futures price traded at $620 per short ton yesterday, while the spot price traded at $649 per short ton,” Reisman said.
Select Price Drivers of the Raw Steels Index
US shredded scrap prices rose 19.9 percent over the month. The US HRC futures contract spot price rose 7.1 percent to settle at $649 per short ton. Korean steel scrap closed the month with a 5.3 percent rise in price.
Chinese billet finished the month following a 7.6 percent decline in price. Chinese slab prices fell 5.1 percent. On the LME, the cash price of steel billet fell 9.3 percent to $340.00 per metric ton. A 10.4 percent decline for the 3-month price of steel billet on the LME left it at $345.00 per metric ton. Following a 3.1 percent decline, the 3-month price of the US HRC futures contract reached $620.00 per short ton.
The price of Chinese coking coal ticked up very slightly on the month, rising only about a dollar per metric ton. Prices for Korean pig iron also ticked up about a dollar per metric ton.
The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends over a 30-day period. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.