Brazil’s Gerdau is one steel company that’s ahead of the game right now.
“The company, which ranks as the world’s second-biggest producer of long steel behind ArcelorMittal, posted a net income of R$401m ($173m) for the second quarter on net revenue of R$9.9bn,” according to the FT. “In contrast, Usiminas, the biggest maker of flat steel in Brazil, lost R$22.1m in the second quarter – its sixth consecutive loss, while analysts are split over whether CSN will post a profit or a loss for the period.”
But not all is good in this steel story: the producer’s stock is down about 18% this year.
On Wednesday, August 14, the day’s biggest mover was the steel billet 3-month price, which saw a 3.3 percent increase on the LME to $155.00 per metric ton. Also on the LME, the steel billet cash price rose 2.3 percent to $135.00 per metric ton.
Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India remained a bit higher. The price of Chinese HRC rose by 1.4 percent after a three-day flat streak. For the fifth consecutive day, the price of Chinese coking coal held flat.
The 3-month price of the US HRC futures contract flattened at $624.00 after two days of improvement. The US HRC futures contract spot price held steady yesterday, remaining around $648.00 per short ton.