Sales figures and earnings for Evraz plc and Severstal OAO fell in the first half of this year, as the producers continue to worry about falling steel prices.
“Executives of both companies warned that they expected steel prices to remain weak for the short to medium term, with little hope of improvement before the end of the year. However, both sets of results showed that the two companies, most notably Evraz, are becoming more efficient on costs and more dedicated to reining back capital expenditure,” according to the Financial Times.
Global Steel Market Price Update
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India remained rather rangebound. The price of Chinese HRC held steady. The price of Chinese coking coal hovers in place for the fifth day in a row.
The 3-month price of the US HRC futures contract closed Thursday, August 29 at $628.00 per short ton, halting its three-day flat run with a 0.5 percent drift. The US HRC futures contract spot price rose by 0.2 percent to $649.00 per short ton after a three-day flat streak.
The cash price of steel billet remained essentially flat at $140.00 per metric ton on the LME. The steel billet 3-month price saw little movement on the LME at $160.00 per metric ton.