Via the Middletown Journal: “To hedge against the up and down market prices of raw materials, AK Steel made a pair of multi-million acquisitions in coal and iron ore interests in October 2011 including the deal with Magnetation [LLC],” which will make iron ore concentrate and pellet’s for AK Steel in a new $300 million Indiana plant.
“AK Steel’s goal is for its coal and iron ore supply chains to be 50 percent vertically integrated by 2015 — so in the future AK Steel will buy half its steelmaking materials and produce the other half itself,” according to the article.
Meanwhile, global daily steel and raw materials prices saw upwards movement, especially in China:
Chinese HRC saw the biggest upwards shift for the day, rising 2.3 percent on Thursday, July 4. The price of Chinese slab finished the market day up 0.3 percent per metric ton. The price of Chinese coking coal was unchanged. The price of iron ore 58% fines from India inched a bit higher than in previous days.
The cash price of steel billet remained essentially flat on the LME at $120.00 per metric ton. On the LME, the 3-month price of steel billet held steady around $150.00 per metric ton.
Due to the July 4th Independence Day holiday, the US HRC futures contract 3-month price remained flat at $619.00 per short ton. The spot price of the US HRC futures contract saw little movement yesterday at $632.00 per short ton.