Steel Price Outlook, Amid Some Higher Prices, Muted By Oversupply

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Although reports of rising steel prices in China, Europe and the US will likely not last long.

“The increase, unusual for the sleepy summer months, is due to rising raw material prices and a mild demand awakening as slightly more confident end-users restock,” Italy’s Marcegaglia said, as quoted by Reuters.

However, we’ll be keeping a close eye on our monthly Raw Steels MMI® – August’s index value will be released by the end of today – to see how global steel markets really did over the month of July. As Reuters has reported, oversupply issues should continue to hamper the market.

According to our own steel price index, results over the past week have been mixed.

The price of iron ore 58% fines from India increased slightly this week. The price of Chinese HRC fell 0.6 percent after rising 1.1 percent the week before. Chinese coking coal remained unchanged for the week. Chinese slab saw its price rise 0.5 percent over the past week.

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The price of US shredded scrap rose 0.3 percent. This was the third week in a row of increasing prices. The 3-month price of the US HRC futures contract closed last week at $605.00 per short ton, after a 0.8 percent drop. Last week, the spot price of the US HRC futures contract shifted slightly, rising by 0.2 percent to close at $636.00 per short ton.

A 19.2 percent increase made the 3-month price of steel billet the week’s biggest mover, closing at $155.00 per metric ton on the LME. The steel billet cash price closed last week at $125.00 per metric ton on the LME after a 8.7 percent rise in its price.

Korean steel scrap and pig iron prices were flat for the week.

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The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.