Although today’s steel and raw materials prices weakened (indeed, the entire complex has been suffering malaise this year to say the least), a very bright spot in terms of steel demand could be just around the bend.
“We’ve got an opportunity, using the horizontal drilling methods, etc., to make the US the lowest-cost energy producer in the world,” said Bill Strauss, senior economist of the Chicago Federal Reserve and leading voice on the Midwest manufacturing economy. “This will benefit our industry, especially the chemical energy sector. Facilities are being re-done, and exports of chemicals will improve. We’re just in the infancy of seeing these changes come into effect.”
Read more in our interview with Bill Strauss here.
Meanwhile, the 3-month price of the US HRC futures contract saw a 0.5 percent drop on Tuesday, July 30, landing at $607.00 per short ton and making it the biggest mover of the day. The US HRC futures contract spot price saw little change in its price on Tuesday at $636.00 per short ton.
The price of iron ore 58% fines from India dipped slightly lower. Chinese HRC prices saw a 0.3 percent decline. Chinese slab finished the day up 0.3 percent.
The cash price of steel billet steadied at $125.00 per metric ton following two-days of increases on the LME. After a couple of days of improving prices on the LME, the 3-month price of steel billet held steady at $155.00.