The Steel Index’s price of the benchmark grade of iron ore, as reported by the Financial Times, fell again on Wednesday by 4.2 percent.
“[The iron ore price] is the lowest since October, down 8 percent this week and 20 percent in the past month,” according to the article, as Chinese steelmakers are worried about the economic picture and demand forecast for its product. Another huge factor at play here: overcapacity in the steel industry. Check out Stuart Burns’ analysis of the issue here.
How did iron ore prices fare on the MetalMiner IndX℠?
The Chinese price of iron ore 58% fines from India hit a high price between $130 and $140 per metric ton on Wednesday.
Chinese steel prices were mixed for the day. Following a quiet couple of days, the price of Chinese HRC fell 0.9 percent yesterday. After two changeless days, the price of Chinese slab fell 0.3 percent.
The 3-month price of steel billet saw the biggest increase at 6.7 percent on the LME, finishing at $160.00 per metric ton for Wednesday, May 29. The steel billet cash price increased 4.0 percent on the LME to $130.00 per metric ton.
For the fifth consecutive day, the US HRC futures contract 3-month price held flat at $600.00 per short ton. The spot price of the US HRC futures contract saw little movement at $578.00 per short ton.