Going by the world’s largest steelmaker’s outlook, the market may continue to be depressed for a while.
ArcelorMittal on Thursday “cut its 2013 core profit guidance on weaker-than-expected demand and lower-than-expected raw material prices,” according to a Reuters report. However, the company “sees steel shipments rising between 1 and 2 percent in 2013, driven by a 3 percent rise of global steel consumption. The company believes all regions except Europe will demand more steel than in 2012.
With a decline of 0.3 percent to $605 per short ton on July 31, 2013, the US HRC futures contract 3-month price recorded the biggest decline of the day. The US HRC futures contract spot price remained essentially flat at $636 per short ton.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India ended up slightly higher. After dropping for two days, the price of Chinese HRC flattened. For the fifth consecutive day, the price of Chinese coking coal held flat as well.
The cash price of steel billet saw little movement yesterday on the LME, closing out around $125 per metric ton. On the LME, the 3-month price of steel billet saw little movement yesterday at $155 per metric ton.