Looks like Severstal has taken on a gloom characteristic of its home country – specifically on its steel price forecast.
Via Reuters: Deputy Chief Executive Thomas Veraszto said at a recent conference, “We don’t see really any silver lining at this point in time, that prices may pick up any time soon.” Veraszto oversees corporate development for Severstal.
Time to break out the vodka?
“The company’s net earnings dropped 90 percent in the first quarter from a year earlier, as the slowdown in Chinese growth, Europe’s debt crisis, and a glut of steel production around the world weighed on prices.”
Chinese steel prices were mixed for the day on MetalMiner’s price index. However, the price of iron ore 58% fines from India hit a high price that bested yesterday’s by a slight margin.
More steel price trends:
After three straight days of no change, the price of Chinese slab decreased by 0.6 percent. The price of Chinese HRC 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 yesterday at $130.00 per metric ton. On the LME, the steel billet 3-month price held steady around $150.00 per metric ton.
The US HRC futures contract 3-month price showed little movement on Monday at $605.00 per short ton. The spot price of the US HRC futures contract remained essentially flat at $600.00 per short ton.
At least the CME steel prices have recovered from $585 in mid-May, according to the CME’s website. The May price was the lowest in several years, Reuters noted.