As Steel Prices Drop, Will China's Spending Boost Long-Term Iron Ore Prices?

by on

Dropping 4.5 percent on the LME, the cash price of steel billet was the biggest mover on MetalMiner’s steel price index on Sept. 7, 2012, closing at $315 per metric ton.

A $13 decline in the 3-month price of steel billet on the LME left the price at $320 per metric ton.

US steel and iron ore companies’ stock experienced a considerable boost after China’s government announced approval for $157 billion in new infrastructure spending on about 60 projects, Reuters reported today. With iron ore prices languishing over the past several weeks, this could be welcome news for iron ore and steel producers.

Chinese steel and iron ore prices, however were flat for the day on the MetalMiner IndX℠

The high and low prices of iron ore 58% fines from India remained under $135 per dry metric ton. After dropping for two days, the price of Chinese HRC flattened, remaining above $500 per metric ton. The price of Chinese coking coal saw essentially no change for the fifth day in a row.

The US HRC futures contract 3-month price has been on the decline for eight days and is now at $600 per short ton. The spot price of the US HRC futures contract has been on the rise for 13 days and is now at $649 per short ton.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.