Rio Tinto has its rose-colored glasses on. The company’s “iron ore business is getting a boost from China’s moves to modernize its steel industry to cut down on pollution, its chief executive said on Thursday,” reports Reuters.
“Steelmakers in China face a spate of mill closures this year as Beijing steps up its efforts to become more environmentally friendly, prompting some fears of a steep fall in prices for raw material iron ore.”
“Goldman Sachs has forecast prices sinking to $80 a tonne by 2015 from around $120 at present.”
“Rio Tinto chief executive Sam Walsh dismissed the concerns, saying the changes were generating greater demand for the higher quality ores his company mines in Australia’s Pilbara region.”
In metal price news for steel…
The week’s biggest mover on the weekly Raw Steels MMI® was the cash price of steel billet, which saw a 2.7 percent decline on the LME to $355.00 per metric ton. Also on the LME, the 3-month price of steel billet closed at $360.00 per metric ton after a flat week.
Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India was range bound. After a 0.6 percent decline, Chinese HRC closed out the week. Prices for Chinese coking coal remained constant, closing the week. The week finished with no movement for Chinese slab.
US shredded scrap fell 2.1 percent over the past week. The 3-month price of the US HRC futures contract rose 0.5 percent over the past week. The spot price of the US HRC futures contract rose 0.3 percent after falling 2.1 percent during the previous week.
Korean steel prices were flat for the week. The price of Korean steel scrap did not change since the previous week. Korean pig iron remained essentially flat from the previous 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.