Cliffs Natural Resources Inc. (NYSE: CLF) and AK Steel (NYSE: AKS) have gotten back in bed together, with the former agreeing to supply the steelmaker with iron ore pellets from 2014 through 2023, according to Crain’s Cleveland Business.
“Cliffs said the new agreement provides a pricing mechanism for the volumes sold in the contracted years. The annual price will be determined by a formula where the price is adjusted by multiple factors, including seaborne pricing for iron ore and certain producer price indices,” according to the article.
A separate Reuters analysis mulls whether iron ore prices are acting the way that everyone said it would.
The China price of iron ore 58% fines from India drifted a tiny bit lower on the day on MetalMiner’s steel and raw material index.
The day’s biggest mover, Chinese HRC steel, broke away from a static phase with a 0.8 percent drop on Wednesday, August 28, after three changeless days. The price of Chinese slab finished the day following a 0.3 percent increase. The price of Chinese coking coal was unchanged.
The cash price of steel billet saw little movement on the LME at $140.00 per metric ton. The 3-month price of steel billet was unchanged on the LME at $160.00 per metric ton.
The 3-month price of the US HRC futures contract saw essentially no change for the fifth day in a row, remaining around $631.00 per short ton. The US HRC futures contract spot price continues hovering around $648.00 per short ton for the fifth day in a row.