China Cuts Production, Steel Futures Price Falls on Weekly Index

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China steel production 2012

Image source: guardian.co.uk

The biggest mover on the weekly Raw Steels MMI® was the US HRC futures contract spot price, which saw a 7.8 percent decline to $595.00 per short ton. This comes on the heels of a 0.8 percent increase the week before. The US HRC futures contract 3-month price, meanwhile, rose 4.1 percent to $635.00 per short ton after falling 0.8 percent during the previous week.

China’s Iron & Steel Assocation (CISA)’s data showed that “China’s average daily crude steel output fell to 1.843 million tonnes between Sept 21-30, down 0.74 percent from the preceding 10 days,” according to Reuters. China has cut capacity to deal with slowing global steel demand.

Also, the World Steel Association has gone ahead and downgraded 2013 steel demand growth to 3.2 percent, down from 6.2 percent last year.

US scrap prices also fell for the week.

The price of US shredded scrap fell 1.9 percent over the past week, the third week in a row of declining prices.

Chinese steel prices were mixed for the week. The high and low prices of iron ore 58% fines from India stayed within a tight range, not fluctuating much. The price of Chinese HRC rose 3 percent after falling 0.8 percent during the previous week. Chinese coking coal remained essentially flat from the previous week. Chinese slab gained a slight 2.2 percent this past week.

The 3-month price of steel billet rose 1.6 percent on the LME to $341.00 per metric ton after falling 4.3 percent during the previous week. The steel billet cash price rose 1.2 percent on the LME to $339.00 per metric ton after falling 4.3 percent during the previous week.

In the past week, Korean pig iron saw its price shift up 1.4 percent. Meanwhile, Korean steel scrap traded sideways last week, hovering in place.

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.

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