The World Steel Association’s latest figures show that “global raw steel production declined -3.4% or 4,650 million metric tons during June, falling from 136,302 million metric tons in May to 131,652 million metric tons for the most recent month,” according to this article.
Also, “worldwide raw steel capacity utilization during June fell to 79.2% from 79.6% in May. Compared to June 2012, the new rate is 1.5% lower.”
This goes to show that our hypothesis of further steel weakness may be coming to fruition…
Following two days of increases on the LME, the steel billet cash price dropped by 4.3 percent to end at $110.00 per metric ton on Tuesday, July 23. The 3-month price of steel billet was off by 3.6 percent on the LME yesterday, falling from $135.00 to $135.00 per metric ton.
Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India remained rangebound. The price of Chinese slab increased 0.6 percent. Chinese HRC saw little change in its price on Tuesday.
The US HRC futures contract 3-month price held steady yesterday, remaining around $605.00 per short ton. The spot price of the US HRC futures contract continues hovering around $635.00 per short ton for the fifth day in a row.