According to Reuters, the European Ferrous Recovery and Recycling Federation (EFR) said yesterday that due to low steel scrap demand and falling scrap prices, scrap recyclers’ margins are being hit pretty hard.
“The general situation of the EU steel industry remains worrying; steel demand is 25 percent below its 2007 level and with a current 25-30 percent overcapacity,” the EFR said in a statement. High energy costs and stringent CO2 emissions regulations make European mills much less competitive.
“The short-term market outlook is certainly not very positive for EU steel producers and recyclers,” said the EFR, Reuters reported.
On the MetalMiner IndX℠, the price of US shredded scrap fell 2.8 percent over the past week. This was the fourth week in a row of declining prices.
The week’s biggest mover in steel prices?
The biggest mover on our weekly Raw Steels MMI® was the cash price of steel billet, which saw a 4.3 percent decline on the LME to $335.00 per metric ton. This comes on the heels of a 10.1 percent increase the week before. The 3-month LME price of steel billet fell 4.3 percent to $335.50 per metric ton after rising 8.5 percent the week before.
Chinese steel and raw materials prices were mixed for the week.
The price range of iron ore 58% fines from India kept below $130 per dry metric ton. Following a 0.6 percent increase in the week prior, the price of Chinese HRC fell 0.8 percent last week. The week finished with no movement for Chinese coking coal. Chinese slab also remained unchanged for the week.
The 3-month price of the US HRC futures contract fell 0.8 percent to $610.00 per short ton after rising 1.5 percent the week before. The US HRC futures contract spot price shifted up 0.8 percent to close at $645.00 per short ton this week.
For the third week in a row, the price of Korean steel scrap dropped, falling 1.3 percent, while Korean pig iron prices closed flat.
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. 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.