Raw Steel Closes 2.3% for the Week, EU Taking Another Look at Shale Drilling

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EU politicians left shale oil drilling out of tougher rules on exposing the environmental impact of oil and conventional gas this week. Poland also introduced an investor-friendly shale gas bill aimed at cutting red tape and regulatory hurdles, as Russia’s annexation of Crimea forced EU politicians to consider their own energy independence.

While more investment in shale drilling would help European steel manufacturers in the short-term, the predicted boom in expensive steel products has not exactly panned out yet here in the US. Transportation has also been an issue with drilling supplies here that would need to be considered. Still, any investment by a previously wary Europe in shale oil would be a welcome sight to the quality metals manufacturers of Europe.

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On the LME, the steel billet cash price ticked up 1.3 percent over the past week to $395.00 per metric ton. Also on the LME, the 3-month price of steel billet remained steady from the previous week at $400.00 per metric ton.

Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India fluctuated in a ten-point range for the week. The price of Chinese HRC rose 0.6 percent after falling 2.3 percent during the previous week. Prices for Chinese coking coal remained constant. The price of Chinese slab did not change since the previous week.

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Korean steel prices were flat for the week. Following a steady week, prices for Korean steel scrap closed flat. The week finished with no movement for Korean pig iron.

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