Ferrexpo Production Costs Down, Lower Sale Prices; Korean Steel Scrap Down 6%

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Ferrexpo, the Ukrainian iron ore miner recently reported that the “cost of producing its pellets in the third quarter had decreased as one of its mines continues to ramp up, making up for a lower sales price,” reports Reuters.

The company announced that “total production of pellets in the year to date was 8 million tonnes, up 12.5 percent on last year.”

The 3-month price of the US HRC futures contract finished as the week’s biggest mover on the weekly Raw Steels MMI® after dropping 0.3 percent and landing at $633.00 per short ton. The price of US shredded scrap rose 0.3 percent over the past week. This was the third week in a row of increasing prices. The US HRC futures contract spot price remained steady from the previous week.

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Korean steel scrap dropped, making it the biggest mover on the weekly Raw Steels MMI® this week, after drifting 6.0 percent. Following a steady week, prices for Korean pig iron closed flat.

Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India were range bound. Chinese HRC prices held steady from the previous week. Chinese coking coal remained unchanged for the week. The price of Chinese slab rose 0.9 percent after falling 0.6 percent during the previous week.

The steel billet cash price rose 2.4 percent on the LME over the past week to $215.00 per metric ton. This was the fifth week in a row of increasing prices. The steel billet 3-month price saw a 2.1 percent drop this week on the LME, closing at $230.00 per metric ton.

FREE Download: The Monthly MMI® Report – covering the Steel/Iron Ore markets.

Since last week, the price of the US HRC futures contract 3-month price fell to $633.00 per short ton after moving 0.3 percent. The price of US shredded scrap finished the week 0.3 percent higher. The US HRC futures contract spot price remained unchanged for the week.

The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.