US Steel Facing Weak Demand as US HRC Futures Contract Falls

The US steel industry continues to sputter as earnings outlooks and forecasts appear worse for Q2 than for Q1.

And though Nucor identified energy and automotive sectors as positive to earnings, construction appears to lack momentum.

Other producers such as US Steel tell a similar story with declining steel exports to Latin America but also weak demand coming from European and Chinese markets. In addition, US Steel’s Stelco plant in Canada has had a lock-out since April 28.

MetalMiner readers might want to read this article posted by the World Socialist Web Site calling for reactionary Canadian nationalism (ed. note: whatever that means) for one take on the situation.

US Steel has faced two lockouts previously.

Meanwhile, weakening prices ended a three-day flat streak as the 3-month price of the US HRC futures contract fell 0.8 percent on Thursday, June 13 to $600.00 per short ton. The US HRC futures contract spot price fell 0.5 percent to $600.00 per short ton.

Chinese steel prices were flat for the day.  Chinese HRC held its value on Thursday. The price of Chinese coking coal saw essentially no change for the fifth day in a row.

Also on the LME, the steel billet cash price saw little change in its price on Thursday at $130.00 per metric ton. On the LME, the steel billet 3-month price remained essentially flat at $150.00 per metric ton.
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