ArcelorMittal’s Liberian operations add to BHP Billiton’s, Rio Tinto’s and others’ pile of global iron ore this year, which could backfire.
“ArcelorMittal Liberia shipped 3 million tonnes of iron ore between January and early August and is on course to produce 4.5 million tonnes this year, it said on Thursday. The increase adds to growing world supply and is expected to depress iron ore prices later this year. But the impact will be modest in an overall 1.1 billion tonne market,” according to Reuters.
Here’s MetalMiner’s recent view on iron ore price support in the second half of 2013.
The 3-month price of the US HRC futures contract saw the biggest increase at 0.8 percent, finishing at $629.00 per short ton for Thursday, August 15. The spot price of the US HRC futures contract saw little price change on Thursday at $648.00 per short ton.
Chinese steel prices were flat for the day, but the price of iron ore 58% fines from India closed just a bit higher. The price of Chinese HRC held steady. The price of Chinese coking coal saw little movement.
The cash price of steel billet flattened at $135.00 after two days of improvement on the LME. The steel billet 3-month price steadied at $155.00 per metric ton following two-days of increases on the LME.