Nucor Corp., the largest US steel producer by market value and not far behind US Steel Corp., which is the largest by volume, is optimistic for higher Q3 profits based on competitors’ outages and supply disruptions, according to Bloomberg.
According to a Nucor statement quoted by Bloomberg: “Sheet steel profitability improved compared to the second quarter as a result of competitor supply disruptions, customer inventory restocking and some market demand improvement,” the company said. Demand is strongest for energy and automotive goods, while non-residential construction markets ‘are slowly improving from historically low levels.'”
The day’s biggest mover was the cash price of steel billet which dropped by 5.6 percent on Monday, September 16 to close at $170.00 per metric ton on the LME. The 3-month price of steel billet was off by 4.8 percent on the LME yesterday, falling from $200.00 to $200.00 per metric ton.
Chinese steel closed mixed yesterday. The prices of iron ore 58% fines from India remained rangebound. Chinese HRC prices saw a 0.3 percent decline. For the fifth day in a row, the price of Chinese coking coal remained essentially flat.
The US HRC futures contract 3-month price saw little price change yesterday at $623.00 per short ton. The US HRC futures contract spot price remained essentially flat at $642.00 per short ton.