Russia’s NLMK is expecting a significant output increase. The steelmaker “estimated its crude steel output would rise by up to 3.8 percent in 2014 and said it had slashed planned investment for the next three years due to lacklustre market conditions.”
“A sharp decline in demand in crisis-hit Europe and signs of a slowdown in top consumer China have forced steel companies to cut costs and struggle with oversupply.”
“NLMK’s crude steel production will rise to between 15.9 million and 16 million tonnes this year, from 15.4 million in 2013, Chairman Oleg Bagrin told journalists on Monday.”
“Demand growth on the domestic market, which has been more robust than in Europe, will nevertheless decline to 2-3 percent from 3-4 percent last year, Bagrin said.”
In metal price news for steel…
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC was unchanged. The price of Chinese coking coal saw essentially no change for the fifth day in a row.
The steel billet cash price held steady on the LME at $365.00 per metric ton. The steel billet 3-month price continues hovering around $360.00 per metric ton on the LME for the fifth day in a row.
Following three days of little change, the 3-month price of the US HRC futures contract rose by 0.5 percent to $632.00 per short ton. The spot price of the US HRC futures contract increased 0.3 percent to $660.00 per short ton.