Cash Price of Steel Billet Increases Significantly, as Auto Sales Increase

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Ford’s demand in China and the US continues.

According to Investors.com, “Ford projects a 3.6% increase in industrywide vehicle sales globally this year to 49.5 million units from 47.8 million last year. It sees China unit sales rising to 20.5 million from 19 million last year. In the U.S., it sees sales rising to 15.5 million from 14.8 million. But Ford expects Europe, still mired in recession, to buy 13.5 million vehicles, fewer than last year’s 14 million.”

On Wednesday, July 24, the steel billet cash price experienced the biggest change, rising 4.5 percent on the LME to $115.00 per metric ton. A $5.00 decline in the steel billet 3-month price on the LME left the price at $130.00 per metric ton.

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Chinese steel prices were flat for the day. The price of Chinese HRC showed little movement on Wednesday at CNY 3,630 ($591.56) per metric ton. The price of Chinese coking coal remained essentially flat at CNY 1,370 ($223.26) per metric ton.

The US HRC futures contract 3-month price rose by 0.8 percent to $610.00 per short ton. The US HRC futures contract spot price saw essentially no change for the fifth day in a row, remaining around $635.00 per short ton.