Things aren’t looking good for JSW Steel Ltd. The company “said its 10 million-tonne-per-year plant in Karnataka state will not operate at more than 80 per cent capacity in the near future as mining restrictions have stifled the supply of iron ore, a key feedstock,” reports The Economic Times.
“Difficulty in sourcing iron ore has forced the company to go slow on plans to nearly triple annual capacity to 40 million tonnes in the next decade, which, along with ArcelorMittal SA and Posco recently pulling out of projects, could derail India’s steel production ambitions.”
The week’s biggest mover on the weekly Raw Steels MMI® was the steel billet 3-month price, which saw a 7.7 percent increase on the LME to $280.00 per metric ton. This week marked the third in a row of rising prices for the metal. Finishing the fourth week of rising prices, the steel billet cash price increased by 7.7 percent on the LME, finishing at $280.00 per metric ton.
Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India was range bound. After a 0.3 percent decline, Chinese HRC closed out the week. The week finished with no movement for Chinese coking coal. Closing out the third week of rising prices, the price of Chinese slab increased by 1.1 percent.
US shredded scrap rose 2.5 percent over the past week. Following a 0.3 percent drop, the US HRC futures contract 3-month price finished the week at $643.00 per short ton. The US HRC futures contract spot price closed at $676.00 per short ton after a flat week.
Korean steel prices were mixed for the week. The price of Korean steel scrap declined 2.8 percent over the past week. Prices for Korean pig iron remained constant, closing 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.