The week’s biggest mover on the weekly Raw Steels MMI® was the price of US shredded scrap, which saw a 9.8 percent decline. Last week marked the fourth in a row of declining prices for scrap prices.
That scrap price decline seems to be a harbinger of more bad news for the steel industry and global steel market. China’s crude steel output rose 2 percent from August to September, reported by China’s National Bureau of Statistics. Meanwhile, Steel Dynamics, a steel producer and metals recycler, saw the company’s third-quarter profit drop 77 percent “as global economic uncertainty cut into steel shipments,” according to Reuters.
Steel Dynamics’ profit fell more than 50 percent for the third straight quarter.
Chinese steel prices, meanwhile, were mixed for the week.
The prices of iron ore 58% fines from India dropped very slightly on the day, while the price of Chinese slab fell 1.3 percent after rising 2.2 percent the week before.
Chinese HRC saw its price rise 0.5 percent over the past week. Chinese coking coal remained essentially flat from the previous week.
Following a 1.2 percent increase in the week prior, the steel billet cash price fell 2.7 percent on the LME last week to $330.00 per metric ton. The 3-month price of steel billet fell 2.1 percent on the LME to $334.00 per metric ton after rising 1.6 percent the week before.
The 3-month price of the US HRC futures contract closed at $635.00 per short ton after a flat week. This past week, the spot price of the US HRC futures contract kept quiet, holding at at $595.00 per short ton.
Prices for Korean steel scrap remained constant, and following a steady week, prices for Korean pig iron closed flat as well.
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.